THE IRISH WIND industry has said there should be a reduced rate of VAT on electric bicycles in the upcoming Budget to encourage people to move away from the car. 

For motorists, Wind Energy Ireland said there should also be a grant to encourage the purchase of privately used second-hand EVs, amid a warning that this will be the “last opportunity” to put in place sufficient resources to meet 2030 renewable energy targets.

In a Budget submission, the industry’s representative body called on the Government to increase resources for the planning system to accelerate renewable energy projects, warning that current supports are a “blueprint for total failure”.

Chief executive Noel Cunniffe said Budget 2024 is an opportunity to provide adequate funding and financial incentives for key infrastructure like EV charging points, facilitating commercial car fleet electrification, industrial and domestic heat electrification.

“Whether it is increasing our usage of electric vehicles, supporting active travel or installing solar panels, educating businesses and communities about sustainable solutions should be at the forefront of our efforts to inspire people to change,” he said.

 Cunniffe added that “the reality is that the country’s planning system is still seriously underfunded” and needs reform.

He said local authorities, An Bord Pleanala, the National Park and Wildlife Service and the Maritime Area Regulatory Authority must agree on the number of staff needed to deliver projects under the Climate Action Plan.

It said a fast-track recruitment process for these bodies should be resourced and a million euro should be allocated to the Irish Environmental Network to support non-governmental organisations working on renewable energy.

“The acceleration of onshore wind delivery is key and we
have a strong pipeline of new projects,” the submission said. 

“However, planning applications for onshore wind farms are supposed to be
decided by An Bord Pleanála within 18 weeks but, on average, it is taking over a year.

“As of time of writing, in mid-July, not a single onshore wind farm has received planning permission from An Bord Pleanála since September 2022. This is a blueprint for total failure.”

Additional proposals

The submission calls for a 1.5 million euro increase in the allowance for Skillnet places in sustainable finance, green tech and climate change.

It also calls for an increase of five million euro in the Climate Action Fund for investment in environmental research and protection, along with a million euro for a standalone biodiversity agency.

The document also proposes to increase the funding allocated over the next three years
to building a national EV charging network from €100 million to €150 million, to extend the €5,000 VRT reliefs for BEVs and electric vans up to 31 December 2025. 

“When our renewable energy is flowing we need to have a society that can use the electricity generated. This means having the grid infrastructure in place to distribute the energy to our homes, businesses and transport systemsm” Cunniffe said.

“All of these need to rapidly change to electricity as their primary source of power and away from polluting fossil fuels.”

Wind Energy Ireland said there should be a partial income tax credit for EV charging costs and that the 5,000-euro VRT relief for battery-powered vehicles and electric vans should be extended to 2025.

It also wants funding for an EV charging network to increase from 100 million euro to 150 million euro over the next three years.

The submission seeks an increase in the research and development tax credit for green technologies to 50%.

Wind Energy Ireland said: “We know that consumers and businesses are struggling every day with high energy bills and they need their electricity to be affordable as well as clean.

“We would welcome the opportunity to support the Government in examining ways to reduce the cost of developing renewable electricity and help drive energy bills down. Funding a cross-government group to lead this would be a strong start.”

The representative body is seeking the allocation of four million euro to establish a climate emergency communications unit “to ensure people have the information they need” on the issue.

Additional reporting by PA