The Government has approved the terms and conditions of Ireland’s second offshore wind auction, describing it as “another important milestone in the State’s offshore renewable energy (ORE) ambitions”.
The “Tonn Nua” auction site will be located off Ireland’s south coast and will be the State’s second ORE auction to take place under the Offshore Renewable Electricity Support Scheme (ORESS).
The auction bidding process is expected to take place in early 2025.
The project will procure 900 megawatts of clean energy, making a "sizeable contribution to Ireland’s wider climate and renewable electricity targets", the Department of Environment says.
It will also save 1.8 million tonnes of CO2 emissions each year after its construction, it says.
The ORESS 1 auction in May 2023 procured over 3 gigawatts (GW) of capacity from four offshore wind projects - said to be enough to power over 2.5 million Irish homes.
The competitive price secured – at an average of €86.05/MWh (megawatt hour) – was one of the lowest prices paid by an emerging offshore wind market in the world, the department says.
The Tonn Nua auction will be the first ORE auction to be held within the State’s first spatial plan for ORE development– the South Coast Designated Maritime Area Plan (SC DMAP).
The SC DMAP was approved by the Oireachtas on October 10th last, and followed what the department says is a” comprehensive environmental assessment process”.
It says it involved an “almost year-long engagement process with coastal communities and key stakeholders, including fishers, environmental NGOs and local authorities”.
Including the Tonn Nua auction site, the DMAP identifies four maritime areas off the south coast in which offshore wind development will take place over the next decade.
All four maritime areas are located off the Cork, Waterford and Wexford coast.
The department says that the DMAP will deliver real opportunities for substantial regional development along the south coast.
An independent analysis has highlighted these potential economic benefits and employment opportunities associated with implementing the plan - which could deliver inward investment of €4.4 billion and an estimated 49,000 full-time equivalent (FTE) years of employment to the Irish economy, it claims.
“The analysis further highlights that more than 65% of inward investment and employment opportunities should be captured by the south coast region,”it says.
Tonn Nua will also see a community benefit fund established by the winning auction bidder, who will pay roughly €7m per year into the fund over 20 years to communities of the south cost – totalling €140 million, the department says.
The fund will support the sustainable environmental, economic, social, and cultural well-being of the local community, with grants to local clubs and other community groups and projects, it adds.
Welcoming the Government’s approval of the auction terms and conditions,Minister for the Environment, Climate and Communications Eamon Ryan said:
“Approval of the Tonn Nua auction terms and conditions is a hugely important milestone as we look to increase our share of renewable electricity to 80% by 2030.”
“ By providing a long-term source of secure indigenous green energy, the deployment of offshore renewable energy will ensure that Ireland continues to play our part in addressing the escalating global climate emergency,”he said.
‘‘It is a further response to the twin challenges of energy security and affordability. This auction will bolster the energy security of Ireland, safeguarding the electricity needs of our homes, hospitals, and businesses,”he said.
‘‘I have every confidence that Tonn Nua will build upon the success of our first offshore auction in 2023, ORESS 1, which overperformed all expectations and will save Irish electricity consumers hundreds of millions of euros every year. Offshore wind is good for customers, good for the environment and good for business,”he said.
Commenting on the approval of the South Coast DMAP, Ryan described it as a “hugely significant milestone for Ireland and the south coast region – and evidence that Ireland is showing real leadership in the marine space”.
While allowing the State to protect our marine environment and biodiversity, it will also facilitate co-existence between offshore and other marine users and activities – such as aquaculture, commercial fishing, tourism and recreation,” he said.
‘‘Our engagement with local communities and key marine stakeholders during this plan’s consultation period has been unprecedented and has been central to the development of this plan. I would like to thank all of those who met with our officials at town hall meetings, in local authority offices, on the quayside, in schools and in their workplaces over the last 12 months,” he said.
‘‘Ireland has enormous offshore wind potential – not only to deliver cheaper, cleaner and more secure energy to our homes and businesses – it has the potential to deliver tens of thousands of new green jobs for many communities across the State. By creating a world-class marine planning and regulatory environment, it will send the right signals to industry and investors. This will also give certainty to the public about what development should happen and where they will take place,” Ryan said.
