Ireland’s First Offshore Wind Auction

May 11th 2023

The results are in from Ireland’s first offshore wind auction under the Renewable Electricity Support Scheme (referred to as ORESS 1). The auction allowed renewable energy projects to compete and secure contracts to provide electricity for a period of 20 years.

The auction results exceeded expectations in terms of both the amount of renewable energy acquired and the low price achieved. The average price secured, €86.05/MWh, is one of the lowest in the emerging offshore wind market worldwide. This low price is expected to save Irish electricity consumers hundreds of millions of euros annually.

Four offshore wind projects have been awarded contracts, with a combined capacity of over 3GW. These projects will generate over 12TWh (terawatt hours) of renewable electricity each year. This is the largest amount of renewable energy ever procured through an auction in Ireland, equivalent to more than a third of the country’s total electricity consumption this year and over a quarter of the projected electricity demand in 2030. It can power more than 2.5 million Irish homes with clean electricity and reduce greenhouse gas emissions by over 1 million tonnes in 2030.

The announced results are provisional and subject to confirmation and State Aid processes, which are expected to be completed by mid-June. Additionally, under the provisions of ORESS 1, successful projects are required to make payments to local marine and coastal communities hosting offshore renewable energy projects. These communities will receive over €24 million per year, starting before construction and continuing for up to 20 years after the project begins producing renewable energy.