In the last week, the Irish Government has published a number of policies, decisions and updates that aim to generate significant investment in energy transition infrastructure both offshore and onshore.
Ireland's first dedicated maritime consenting authority, hydrogen strategy and plan-led offshore renewables regime are intended to give stakeholders confidence in the Irish Government's commitment to the renewable energy sector and to encourage them to press ahead with an ambitious development pipeline that will depend on a predictable regulatory environment.
In this update, Matheson's Energy and Infrastructure team discuss the key details you need be aware of.
Summary
Offshore Wind:
- The Irish Government has issued a consultation (the "ORESS 2 Consultation") which sets out its plan for the next phase of offshore wind auctions in Ireland.
- Two auctions will take place in 2024 – the first, for a pre-determined south coast site with 900 MW capacity and the second, for one or more pre-determined east coast site(s) with an as yet undetermined capacity.
- The Irish Government's plans for ORESS 2, combined with the recent ORESS 1 auction and other policy developments, underpin its ambition to deliver 5 GW of offshore wind capacity by 2030.
- In terms of future offshore wind auctions (after ORESS 2), these are likely to take place under the 'Future Framework' – the term used for the Irish Government's longer-term offshore wind regulatory regime.
Hydrogen:
- The Irish Government has also now published its long-awaited National Hydrogen Strategy which supports an intention for Ireland to be "a net exporter of renewable hydrogen in the longer term."
- The Hydrogen Strategy provides a roadmap for those looking to invest in the hydrogen sector, and touches on key topics such as hydrogen production, green hydrogen, transportation, storage and potential end-uses.
- The Hydrogen Strategy notes that from now until 2030, hydrogen will be produced in Ireland from grid connected electrolysis created from surplus renewables. During this time, 2 GW of offshore wind capacity dedicated to generating green hydrogen will be developed under an offshore wind phase known as 'Phase 3'.
Offshore Wind – Key Points
Offshore Wind Phases:
Following the success of four 'Phase 1' offshore wind projects in 'ORESS 1' (the first Irish offshore renewables subsidy auction), the next phase of offshore wind development in Ireland will be 'Phase 2'. Phase 2 will be developed using plan-led approach (in contrast to Phase 1's developer-led approach), with the Irish government identifying specific areas for offshore wind development.
ORESS 2 Auctions:
The ORESS 2 Consultation confirms that there will be at least two offshore auctions in Phase 2:
- ORESS 2.1: The first auction will be for a specified site (this auction will cover one site, currently labelled a 'provisional development area' ("PDA"), within a larger 'DMAP' area (see DMAP explainer below)) off the south coast of Ireland with a specified capacity (900 MW). ORESS 2.1 is scheduled to launch in November 2023, with bids expected in February 2024.
- ORESS 2.2: This second auction for one or more PDA(s) off the east coast of Ireland with a specified capacity (400 MW North Irish Sea and 700 MW South Irish Sea). ORESS 2.2 is scheduled to launch and conclude in 2024.
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