Eoin Ó Broin
Question:153. Deputy Eoin Ó Broin asked the Minister for the Environment, Climate and Communications if consideration has been given to community renewable projects for offshore wind developments. [33436/21]
View answerTuesday, 22 June 2021
Questions (153)
Written answers
My Department is currently developing terms and conditions of the first offshore wind auction under the Renewable Electricity Support Scheme (RESS), which will support the first phase of offshore wind development in Ireland.
The levelised cost of energy produced by offshore wind has fallen steadily over the past decade, driven in part by technological advances and competitive auction pressures, but also by scale increases in both offshore turbines and the quantity of turbines installed in a given offshore windpark. A medium-size offshore windpark now entails installed capacity of circa 500MW and a corresponding capital expenditure of over €1.5 billion, according to the latest estimates provided by the International Renewable Energy Agency (IRENA).
The RESS is intentionally designed to leverage the greater energy production capabilities of offshore wind in favour of coastal and marine communities through the community benefit fund. This revenue-sharing mechanism mandates a community payment of €2 for every MWh of energy generated. In practice, this will mean multi-million euro contributions per project, per annum, to offshore communities.
In order to ensure good governance and the sustainable use of these funds, guidance will be provided by my Department or a nominated body, complementing the RESS terms and conditions themselves, and firmly establishing local community benefits in their administration.