The Government has given the green light to Ireland’s second offshore wind auction, which is a significant step towards the country’s renewable energy goals. The auction site, known as “Tonn Nua,” will be situated off the south coast of Ireland and will be conducted under the Offshore Renewable Electricity Support Scheme (ORESS). The bidding process is scheduled to take place in early 2025, with the aim of procuring 900 megawatts of clean energy.
This project is expected to make a substantial contribution to Ireland’s climate and renewable electricity targets, as well as reduce 1.8 million tonnes of CO2 emissions annually once operational. The success of the previous ORESS 1 auction in May 2023, which secured over 3 gigawatts of capacity from four offshore wind projects, has set a high bar. The competitive price of €86.05/MWh obtained during the auction was among the lowest in the world for emerging offshore wind markets.
The Tonn Nua auction will be the first to be held within the South Coast Designated Maritime Area Plan (SC DMAP), which was recently approved by the Oireachtas. This plan, following a thorough environmental assessment process, identifies four maritime areas off the south coast where offshore wind development will take place over the next decade. These areas are strategically located off the Cork, Waterford, and Wexford coasts, with the potential to drive regional development in the south coast region.
An independent analysis has highlighted the economic benefits and job opportunities associated with implementing the SC DMAP, estimating an inward investment of €4.4 billion and 49,000 full-time equivalent (FTE) years of employment for the Irish economy. The plan aims to capture over 65% of investment and job opportunities in the south coast region, providing a significant boost to local communities.
Furthermore, the winning bidder of the Tonn Nua auction will establish a community benefit fund, contributing approximately €7 million per year for 20 years to support local environmental, social, and cultural initiatives. This fund will enhance the well-being of the community by providing grants to local clubs, community groups, and projects.
Minister for the Environment, Climate and Communications Eamon Ryan has expressed his approval of the auction terms and conditions, emphasizing the importance of increasing Ireland’s renewable electricity share to 80% by 2030. He believes that offshore renewable energy will play a crucial role in addressing the global climate emergency while ensuring energy security and affordability for Irish consumers.
Additionally, Minister Ryan highlighted the significance of the South Coast DMAP approval, stating that it demonstrates Ireland’s leadership in the marine space. The plan aims to balance marine conservation with the development of offshore wind projects, promoting co-existence with other marine activities such as aquaculture, fishing, tourism, and recreation.
In conclusion, Ireland’s commitment to offshore wind energy not only benefits the environment but also presents economic opportunities and job creation potential. By fostering a conducive regulatory environment and engaging with local communities, Ireland is paving the way for a sustainable and prosperous future in the renewable energy sector.