Minister O'Brien welcomes results of national auction for new onshore wind and solar energy projects
- Foilsithe:
- An t-eolas is déanaí: 24 Meán Fómhair 2025
- Another successful RESS auction provides major boost for renewables as Minister announces provisional results of the fifth auction
- RESS 5 secures enough clean power for over 350,000 homes
- Solar triumphs, strengthening its position as Ireland’s fastest growing renewable technology
- Successful auction will increase the security of our electricity supply and help stabilise energy prices
- Development of renewable electricity projects also creates sustainable jobs and future-proofs the regional and local economies
Minister for Climate, Energy and the Environment, Darragh O’Brien today announced the provisional results of the fifth Renewable Electricity Support Scheme (RESS 5) auction.
Following on from the success of the previous four auctions, RESS 5 provisionally secured 1500 GWh, which will power 357,000 homes. This will make a significant contribution to Ireland’s target of 80% of electricity demand to be met by renewable sources.
The outcome of the RESS 5 auction confirms solar PV’s pivotal role in Ireland’s clean energy transition, reinforcing its role as Ireland’s fastest growing renewable electricity source. Solar is highly complementary to wind generation, meaning this rapid growth of solar strengthens Ireland’s ability to generate clean electricity all year round, enhancing our security of supply and helping to stabilise electricity prices.
Today’s results mark a major milestone in delivering Irish energy independence and in providing long term security of clean renewable electricity for Irish households. Renewable electricity is Ireland’s energy insurance policy, which makes our transition to a renewables-led system a key priority. The more dependent a country is on imported fossil fuels, the greater its vulnerability to international energy markets. Higher deployment of domestic renewable electricity increases the stability of Ireland’s electricity prices and our economy.
Key aspects of the results:
- 1,500 GWh have been identified as provisionally successful. This is the maximum target volume for RESS 5 that was set ahead of the auction. This reflects the Government’s focus on energy affordability;
- This equates to over 1,000 MW of onshore renewable electricity (218.84 MW of wind and 860.38 MW of solar);
- The RESS 5 Weighted Average Price of €98.81/MWh reflect a small increase from €96.85/MWh in RESS 4, but this average price increase from last year's auction is well below the general rate of inflation over the same period;
- As with previous RESS auctions, support is only provided to renewable generators when market prices are low. Generators are required to repay money to electricity customers when market prices are high. This two-way settlement arrangement provides significant consumer protection;
- All projects will be obligated to contribute to a Community Benefit Fund (CBF) at a minimum rate of €2/MWh. These projects will contribute about €45 million over the life of the RESS – €3 million per year – to those communities which host these vital renewable electricity projects.
Minister O'Brien said:
"I am very pleased to confirm the success of the RESS 5 auction, which has provisionally secured enough clean power for over 350,000 homes. With this volume of new clean electricity, we are not only reducing carbon emissions and dependence on imported fuels but also generating investment and jobs in communities across the country.
"These provisional RESS 5 results show that our policies are working and will help to maximise the volume of renewables connecting to the electricity grid at the lowest cost to the consumer. The auction results also reflect that solar is continuing to be the fastest growing renewable electricity source in the country and is rapidly transforming Ireland’s energy system. Developing our solar capacity, in tandem with onshore and offshore wind, will ensure we can generate clean electricity all year round.
"Accelerating and increasing the deployment of renewable electricity generation, especially onshore wind and solar, is fundamental to meeting our sectoral climate targets. July this year also marked a significant milestone for Ireland, as it was the first full month in which coal did not feature in our electricity fuel mix, after its use was discontinued at Moneypoint in June after 40 years.
“We are already world leaders for installed wind capacity per capita and for the integration of variable renewable electricity onto the grid. We will continue to advance our clean energy transition to secure a secure, sustainable and resilient energy future. The deployment and connection of wind and solar energy generation at pace and at scale to our electricity grid benefits households and business by shielding them from volatile fossil fuel imports using our indigenous natural energy resources."
Volume procured and price secured
The RESS 5 results compare well with other recent renewable energy auctions in Europe, in terms of volume procured and auction prices when adjustments for scheme specific designs are accounted for (indexation, contract length, and so on). At a time of significant inflationary and other cost pressures domestically and internationally, the RESS 5 auction has delivered very competitive outcomes, in terms of both price and the volume of renewables successful in the auction. The provisional results of the RESS 5 auction can be viewed on the EirGrid website.
Revised National Planning Framework
Government is committed to accelerating deployment of onshore renewables. Regional renewable electricity capacity allocations for onshore wind and solar PV have been included in Ireland’s Revised National Planning Framework. The inclusion of the regional renewable electricity capacity allocation is a critical step towards achieving Ireland’s ambitious national renewable electricity targets.
ENDS
Notes to the Editor
The Renewable Electricity Support Scheme (RESS) received EU state aid approval in July 2020. The current scheme is approved to end 2025. RESS competitions post-2025 will be subject to further State Aid approval from the European Commission.
The RESS is a product of both independent economic analysis and public participation and consultation. The development of RESS has included an in-depth review of international best practice, across the UK, Denmark, Spain, Germany, Canada, and Scotland — world leaders in the integration of renewable electricity generation.
The Accelerating Renewable Electricity Taskforce was established to accelerate and increase the deployment of onshore renewable electricity generation by focusing on the three key pillars of renewables development — Route to Market, Grid Development, and Planning. This cross-Government Taskforce is ensuring a cohesive approach to policymaking by identifying and prioritising the required policies needed to achieve our onshore renewable electricity targets and ensuring that barriers to the implementation of these policies are removed or minimised to the greatest extent possible.
Today, with over 7GW of renewable generation capacity, Ireland’s renewable electricity resources are providing stability and resilience to external price shocks at a fixed price. These projects not only deliver clean energy, but they also support rural economies by generating revenue through commercial rates and creating employment.
The inclusion of the regional renewable electricity capacity allocations in Ireland’s Revised National Planning Framework, along with the recent enactment of the Planning and Development Act 2024, will be critical in ensuring a continued strong pipeline of renewable projects across the country by providing clarity and alignment at the regional level in relation to the national renewable electricity targets and reducing delays in the planning process for energy infrastructure.
RESS auctions
The success of RESS auctions depends on the renewable electricity projects supply pipeline, their participation in the auction, along with evolving market, locational and technological considerations. Maintaining a continuous flow of projects — 'a steady drumbeat' — helps to balance the delivery of projects year-on-year to support the connection of renewable energy projects to the electricity network by EirGrid and ESB Networks and provides a level of predictability for the industry and investors.
This is the fifth auctions to occur between 2020 and 2025. The RESS provides pathways for renewable developers to plan and develop their projects. It will also allow Ireland to take advantage of new technologies as they emerge. Offshore wind projects can participate through dedicated offshore auctions.