From Department of the Environment, Climate and Communications
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The Minister for the Environment, Climate and Communications, Eamon Ryan, has welcomed Cabinet approval for plans to accelerate the delivery of 5GW of offshore wind by 2030. This will deliver a secure, sustainable, and cost-effective supply of indigenous energy for future generations, while unlocking green energy export opportunities.
The Policy Statement on the Framework for Phase Two Offshore Wind will be published later this week. It outlines how the first auction for offshore wind under the Renewable Electricity Support Scheme (ORESS 2) will launch by the end of 2023, following a public consultation on draft auction terms and conditions in mid-2023.
The first auction relates to the delivery of offshore wind capacity on the south coast of Ireland, geographically aligned with available onshore grid capacity. This auction, and all subsequent Phase Two auctions, will result in the development of offshore wind capacity within 'Offshore Renewable Energy (ORE) Designated Areas'.
These Areas, which will be designated according to legislative provisions for Designated Maritime Area Plans (DMAPs) in the Maritime Area Planning (MAP) Act, will guide investment and decision-making and will complement the forthcoming network of Marine Protected Areas. This plan-led approach will ensure that development is managed in a planned, strategic and sustainable way. Importantly, it will provide greater certainty for all maritime users as to where development will be situated.
Welcoming the publication of the Policy Statement, Minister Ryan said:
"This is a critical step on Ireland’s journey towards maximising our offshore wind energy capacity and eventually eradicating our dependence on imported fossil fuels. It will put us on a direct path to zero CO2 emissions, while at the same time creating jobs, future-proofing our businesses, and improving our quality of life. It will also mean cleaner, more secure, home-grown energy for our householders and businesses, particularly when it is abundant.
"The approach we have chosen streamlines the development process for offshore renewable energy by optimising the consenting, planning and grid development resources of the State. It represents the best opportunity to meet our ambitious 2030 climate and energy targets, while at the same time bolstering our security of supply. It will also provide additional certainty for investment in Ireland’s offshore renewables sector due to enhanced project delivery prospects."
Today, Minister Ryan also announced the publication of the key actions for 2023 under the Offshore Wind Energy Programme, the system-wide plan developed by the Offshore Wind Delivery Taskforce.
The Taskforce was established by Minister Ryan to capture the wider and longer-term economic and business opportunities associated with the development of offshore renewables in Ireland. The Taskforce brings together work ongoing across government, agencies and industry to deliver on Ireland’s offshore wind ambitions. The actions highlighted for delivery in 2023 include measures relating to supply chain, ports, policy, skills and workforce, and regulatory consenting.
In addition, Minister Ryan has today confirmed that the maximum offer price for ORESS 1 will be €150/MWh. This follows on from government approval in November 2022 of the terms and conditions of ORESS 1, the decision by the Single Electricity Market Committee (SEMC) in January 2023 on Firm Access Methodology, and the decision of the Commission for Regulation of Utilities (CRU) earlier this month on Offshore Grid Connection Asset Treatment Decision.
It should be noted that the maximum offer price is an auction design safeguard only, and that it is the role of the competition ratio, to be independently determined by the CRU, to drive a competitive result in ORESS 1. Ultimately, this will ensure value for money for consumers. The Minister reserves the right to reject offers, including those not in excess of the maximum offer price.
The Policy Statement on the Framework for Phase Two Offshore Wind and further details on the Offshore Wind Energy Programme, will be published in the coming days on www.gov.ie.
ENDS
The 2020 Programme for Government committed to a target of 5GW of installed offshore wind capacity in Ireland’s maritime area by 2030. This target, along with the commitment that up to 80% of Ireland’s electricity will be sourced from renewables by 2030, was affirmed in the Climate Action Plan 2021 and in the updated 2023 Plan.
Also in 2021, the government adopted the Policy Statement on the Framework for Ireland’s Offshore Electricity Transmission System, which outlined that a plan-led offshore grid model would maximise societal benefits. To avoid delaying offshore deployment, the government also agreed to a three-phased pathway from the existing decentralised model towards a fully plan-led model over the course of this decade.
Phase Two projects will require a Maritime Area Consent (MAC) to be eligible to apply for planning permission, with all MACs to be issued by the newly established Maritime Area Regulatory Authority (MARA). While holding a MAC may not be necessary for participation in ORESS 2, successful ORESS 2 participants will be required to have received a MAC within a strictly time-limited period following publication of ORESS 2 results, with grid connection costings provided by EirGrid prior to auction launch. This will expediate the delivery of Phase Two projects.
The Climate Action Plan 2023, launched in December 2022, is the second annual update of Climate Action Plan 2019 and the first plan to be prepared under the Climate Action and Low Carbon Development (Amendment) Act 2021. It also follows on from the introduction, in 2022, of economy-wide carbon budgets and sectoral emissions ceilings.
The plan details actions across a number of areas, including six vital, high impact sectors: