Paul Murphy criticises offshore wind auction as 'absolute disaster'
Paul Murphy warned that the Irish offshore wind auction will produce the world's most expensive offshore wind and keep electricity prices at winter highs. He criticised reliance on high-priced private contracts and urged the state to invest public funds directly in offshore renewable development.
Auction price concerns
The Sunday Business Post reported that the auction is likely to deliver average prices close to the 150 euro per megawatt hour price cap - more than three times the price of offshore wind in Scotland and much higher than in other European countries. Murphy said those results would mean electricity prices for consumers are no lower than the very high points seen over the winter.
Consumer and environmental impact
Murphy described the likely outcome as "an absolute disaster in terms of the environment, in terms of consumers," arguing that high auction prices will harm households and undermine climate goals. He appealed to the Taoiseach to acknowledge the real-world consequences rather than adhere to market ideology.
Proposal for public investment
Murphy proposed that, instead of enticing private companies with extremely high prices, the state should use its current surplus to invest directly in and develop offshore renewable energy through public-led projects. He argued public investment and state-led development would better protect consumers and the environment.
Government response and ideological framing
The Taoiseach responded that he is focused on outcomes rather than ideology and said the minister has assured him the Business Post report was not accurate and that prices will be similar to those in comparable jurisdictions. He argued for a practical mix of public and private investment - including state involvement, state-owned enterprises, private developers and private capital - describing the approach as aligned with the social market economy that his party and the EPP ascribe to.
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The Sunday Business Post reported at the end that the Irish auction for offshore wind is set to result in the world's most expensive offshore wind, so the results are likely to deliver average prices close to the 150 euro per megawatt hour price cap, that is more than three times the price of offshore wind in Scotland and much higher than in other European countries. The result for consumers will be electricity prices that are no lower than the very high points that we saw over the course of the winter. Now, Taoiseach, I know you're a deeply ideological man, deeply committed to neoliberalism, deeply committed to the idea that only the free market can resolve these things, but I'd implore you to live in the real world here. This is an absolute disaster in terms of the environment, in terms of consumers. Would it not make a lot more sense, rather than trying to attract all these private companies in with extremely high prices, to have the state say, we have this huge surplus at the moment, we're going to invest it, and we're going to have public investment in and development of offshore renewable energy? Deputy Murphy, I know you wish to characterise me in a certain way, but I'm not deeply ideological, really. Perhaps I was 10 or 20 years ago, but at this point I'm really only interested in outcomes for people, not ideology. Perhaps time and experience in government teaches you that, you try and get things done. But what I would say is this, Minister Ryan has assured me that the report in the Business Post on Sunday was not accurate. The prices that we pay will be similar to those in similar jurisdictions, and I believe the best way to harness the enormous potential that we have offshore is through a mix of public and private investment. Yes, it is the state, yes, it is also state-owned enterprises, but it is also private developers, and it is also private capital. To me, that is a very practical approach. If you just go public or if you just go private, you will get less done than if you have the public and the private sector both involved in getting this done. That is the same approach that I would take to housing, for example. If it is any ideology you want to ascribe to it, it would be the ideology of the social market economy, which is the ideology that the EPP and my party would ascribe to, not a neoliberal one. The social market economy, going back to the Christian Democrats of decades ago, private and public sector working together in the common good. The social market economy, going back to the world.
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