The Irish Government has approved the Terms and Conditions of Ireland's second offshore wind auction under the offshore renewable electricity support scheme (ORESS).
This marks another significant milestone in the development and pursuit of Ireland's offshore renewable energy (ORE) ambitions. The 'Tonn Nua' (New Wave) auction site will be located off the south coast of Ireland and will be the first auction to take place under the new Government-led approach. The auction is set to take place in early 2025 and will procure 900MW of clean energy which will significantly contribute to abiding by Ireland's national and EU climate targets.
Policy Shift
This next set of offshore auctions (referred to as 'Phase 2') represents an important departure from the first offshore wind auction 'ORESS 1' which took place in May 2023. The ORESS 1 auction followed a 'developer-led' model and placed the responsibility on the wind farm developers to build out the offshore electricity transmission infrastructure necessary to connect the wind farms to Ireland's electricity grid. Going forward, ORESS auctions will operate from a State led model with EirGrid being responsible for facilitating and advancing this infrastructure. Consequently, these auctions are vital in determining how the State will strive to deliver Ireland's ambitious ORE goals of 5GW of offshore wind capacity by 2030 and 37GW by 2050.
Ireland's Plan for Offshore Development
The Tonn Nua auction is the first of four auctions proposed under the South Coast Designated Maritime Area Plan (SC DMAP).
Tonn Nua is one of the four maritime areas identified by the SC DMAP which includes areas off the coast of Cork, Wexford and Waterford. These areas are to be developed over the next decade and are central to the plan-led approach to ORE that the Government is following. Approved by the Oireachtas on 10 October 2024, the SC DMAP followed comprehensive environmental assessment alongside extensive engagement with coastal communities and local stakeholders which include fishers, NGOs and Local Authorities.
In establishing these designated areas, the State has provided further clarity and certainty to developers and other affected parties and shown their willingness to pursue their ORE objectives.
Next Steps
With the approval of the SC DMAP alongside the publication of these highly anticipated Terms and Conditions, the ORESS Tonn Nua prequalification process will be the next point of focus. Based on the 'indicative roadmap' published last year, this will take place between February and June 2025.
Following prequalification, the ORESS Tonn Nua qualification and auction shall take place. The winning bidder and successful project will receive a Letter of Offer provided they have also been granted a Maritime Area Consent (MAC). This is estimated to take place between June and October of next year.
Conclusion
The approval of these Terms and Conditions represents an important step that the Government has taken towards building Ireland's ORE future. Ireland's potential in this area is vast and harnessing these resources could offer cheaper, cleaner, and more secure energy while creating tens of thousands of new green jobs.
The SC DMAP and the Tonn Nua auction represent important developments in fulfilling the State's potential, providing a best-in-class marine planning and regulatory environment to promote investor and industry confidence.
Contributed by Alex Needham.
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