Wind farm nimbyism means 10,000 jobs just went to Ireland

We're saving money, but Ireland is getting the work.

Yesterday the UK and Irish governments signed an agreement that could see British businesses and consumers funding wind farm developments in Ireland that will export electricity to the UK. As a way of mollifying wind farm critics and keeping costs down, the UK government’s approach is understandable. But the majority of Brits who favour wind power may question why they are paying for jobs in Ireland when unemployment is still at 7.7 per cent at home.

The scale of wind farm development in Ireland that may result from yesterday’s agreement is huge. One project alone, called Greenwire, could see 700 wind turbines with 3GW of generating capacity being built. The UK has a target to generate 30 per cent of its electricity from renewables by 2020 so this project could contribute a tenth towards that goal.

To enable projects like Greenwire to go ahead the UK Government will need to provide financial incentives to developers. If they use the same approach as has been proposed for developments within the UK, the government will guarantee developers a set price for the energy they produce. The money required to meet this guarantee will come from increases to the energy bills of consumers and businesses.

In one sense this is a sensible move. Despite onshore wind power being the cheapest renewable technology, there is a vigorous campaign against expanding its use in the UK. If the growth of onshore wind is restricted and options for producing renewable electricity are limited to the UK’s borders, more expensive technologies, particularly offshore wind, will be needed as an alternative. The Greenwire developers claim their project will actually save consumers and businesses £7 billion compared with a scenario in which an equivalent amount of offshore wind was built.

So far, so good. But there is a catch: by outsourcing the generation of cheap onshore wind power to Ireland, Britain will miss the opportunity to create good quality jobs, develop skills and secure a comparative advantage in a burgeoning sector with huge global potential. Greenwire alone will create 10,000 new jobs in Ireland during its construction phase and 3,000 jobs in the longer term, so the developers claim. These are jobs that could be going to Brits.

Greenwire is a concrete example of how anti-wind farm campaigns could cost the UK jobs and growth.

Campaigners tend to be concerned about the aesthetic impact of wind turbines on the countryside and this must be taken into account. Less valid, however, are claims often made about the effectiveness of wind power technology. The Institute for Public Policy Research has shown that wind power is an effective way to reduce carbon emissions. Furthermore, challenges posed by the variable nature of how much electricity wind farms produce, because the wind doesn’t always blow, are often overstated. This variability can be easily accommodated by the grid, posing no threat of power interruptions, at the levels of deployment expected for the technology by 2020.

The scale of opposition to onshore wind often seems larger than it is. This is because campaigners concerns have been amplified by certain segments of the press and championed by several government ministers including the Energy Minister, John Hayes. In fact most of the UK public consistently supports expanding the use of the technology.

These supporters should get angry if their money is used to support wind farms in Ireland instead of the UK, because major job and economic opportunities will be lost.

Editor's note: The headline of this piece was changed on 25 January at 15:45

Wind farms. Photograph: Getty Images

Reg Platt is a Research Fellow at IPPR. He tweets as @regplatt.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.