Leitrim Wind Farm Racks Up Losses of € 5.6 Million

Garvagh Glebe, a 26MW wind farm in Leitrim,  made a loss of € 3.5 million last year and has racked up combined losses of € 5.6 million after nine years. In 2017, it had a load factor of 23% after it's availability dropped to 59%. This means it was out of operation for 40% of the year and when it was operating only running on average at 23% of it's potential output.

The wind farm was completely dependent on funding from it's shareholder ESB to continue operating for another 12 months. This makes a complete mockery of the idea that renewables are competing against fossil fuels. ESB, which owns most of the fossil fuel power stations in the country, can only maintain investment in it's  loss making wind farms with funding from it's more profitable fossil fuel power sector. 

In 2008, during construction of the wind farm, 6,000 fish, mainly trout, were killed when tonnes of peat swept through the Owengar river which runs into Lough Allen. A similar incident occurred in Co.Galway during construction of another ESB owned Derrybrien wind farm where around 50,000 fish were killed. 

Wind Farm that caused huge landslide makes losses for ESB

Photo : Irish Examiner

The Commission claims also that the construction of the wind farm required the destruction of large areas of coniferous forest amounting to 263 hectares.

 The Commission adds that, after the landslide which occurred on 16 October 2003 and the consequent ecological disaster, when the mass of peat which was dislodged from an area under development for the wind farm polluted the Owendalulleegh river, causing the death of about 50 000 fish and lasting damage to the fish spawning beds, Ireland carried out no fresh environmental impact assessment of this construction before the resumption of work on the site by the developer in 2004 [European Court Ruling 2008].

The construction of Derrybrien wind farm in 2003 caused a huge landslide resulting in the ecological disaster described above by the European Courts of Justice. Ten years later, Ireland still has not complied with their ruling and the EU are now seeking to impose fines on Ireland of €2 million.  

The wind farm was the largest in Europe at the time with 70 vestas turbines (of 0.85MW each) giving a total output of 59.5MW. It began operation in 2006. Ten years later in 2016, the accounts show that the wind farm was making a loss of €2.3 million. Turnover dropped by 25% to €5m and operating costs increased by 17% to €6.3m from 2015.  The company is owned by ESB and €20m in loans are still outstanding to them. It cost €64m to build. 

The above graph compares the load factor (actual output / maximum output) for Derrybrien and the national average as published by Eirgrid since 2010. The load factor has dropped significantly in the past two years to 23% in 2016, which was less than the national average of 28%. Not great for a wind farm located in the windy west of Ireland.  It could be that these particular wind turbines lose capacity over time. The first indication of a loss in capacity occurred in 2015 after eight years of operation. The national average was high at 33% whilst Derrybrien had a load factor 20% less at 26%. 

A loss of wind turbine capacity means higher maintenance costs and this is reflected in the accounts where operating costs have increased to €6.3m from €5.4m in 2016.   

The obvious question that needs to be asked about all this is are the massive environmental impact of wind farms built in such delicate areas worth it ? Whilst ESB will probably absorb  these losses who finally pays ? ESB is 95% owned by the Government. 

National Load Factors - Page 24 here.

Load factors for Derrybrien wind farm for 2015 and 2016 as per published accounts, other years were estimated based on annual turnovers.

Cost Benefit Analysis obligations for Ireland's Renewable Action Plan - Part Three

What is being used to justify the approval of wind farms in my vicinity?

By Pat Swords BE CEng FIChemE CEnv MIEMA

That wind farms have a negative financial and environmental impact is very clear, so what is the actual benefit in terms of alleged climate change impacts. As previously documented, no actual quantifiable data in this regards actually exists. Yet wind farms engage the Directive on Environmental Impact Assessment, in which there is a legal obligation on the competent authority for the planning decision under Article 3 of the Environmental Impact Assessment Directive to complete the following.

• The environmental impact assessment shall identify, describe and assess in an appropriate manner, in the light of each individual case and in accordance with Articles 4 to 12, the direct and indirect effects of a project on the following factors:

(a) human beings, fauna and flora;

(b) soil, water, air, climate and the landscape;

(c) material assets and the cultural heritage;

(d) the interaction between the factors referred to in points (a), (b) and (c).

In reality this occurs in the planning inspector’s report, if at all. If we consider a number of An Bord Pleanala reports for wind farms, which were granted planning permission, we get the following typical wording:

• With regard to the operational impact of the proposed development, I would concur with the findings of the EIS that the generation of renewable electricity by the proposed turbines will have a wider positive impact on climatic considerations in terms of reducing carbon emissions thereby contributing to national and international emission reduction objectives through the displacement of traditional methods of energy generation by the unsustainable combustion of fossil fuels such as coal and oil.

• The generation of electricity from the wind farm will result in an avoidance of greenhouse gas emissions that would otherwise occur from fossil fuel power generating plants.

• Along with other wind energy developments in the area, the proposal will contribute to national targets for renewable energy generation.

• The proposed development will contribute to limiting CO₂ emissions.

In other words they haven’t a clue. So you can believe in this Green Agenda and welcome it. However, if you question it, you will quickly find that like the financial crises, it is based on nothing but Groupthink, hype and the failure to follow proper regulatory procedures.