Dáil Éireann Debate, Tuesday - 31 May 2022
105. Deputy Alan Farrell asked the Minister for the Environment, Climate and Communications the considerations that are being given to reform or amend the auction mechanisms under the renewable electricity support scheme in relation to onshore and offshore wind energy; and if he will make a statement on the matter. [28040/22]
View answer106. Deputy Alan Farrell asked the Minister for the Environment, Climate and Communications his views on the outcomes of the latest auction under the renewable electricity support scheme; and if he will make a statement on the matter. [28041/22]
View answerI propose to take Questions Nos. 105 and 106 together.
The Renewable Electricity Support Scheme (RESS) is one of the major Government policies to help deliver on the ambition in the Climate Action Plan 2021 of up to 80% renewable electricity by 2030. Renewable energy projects compete under the RESS in auctions for support for a period up to 16.5 years under a two-way floating feed in premium meaning that renewable generators will be required to pay back to electricity customers when market prices are high.
I recently announced the provisional results of the second RESS auction (RESS 2) which is expected to deliver approximately 414 MW of onshore wind and 1,534 MW of solar energy, a potential increase of nearly 20% in Ireland’s renewable energy generation. Compared with 2020, the International Energy Agency estimates that the overall investment costs of new utility-scale PV and onshore wind plants are from 15% to 25% higher in 2022. While RESS 2 bid prices were higher than the first auction, renewable energy delivered under the scheme will pay back to consumers when wholesale electricity prices are high through the Public Service Obligation Levy. RESS 2 bid prices are also fixed over the lifetime of the support with no increases from indexing to inflation.
A roadmap of future auctions which sets out the indicative timelines and volumes for onshore and offshore auctions over the coming decade, and provides clarity for developers in relation to when they need to have their projects 'auction ready', was published in December 2021. This roadmap will be updated later this year. A detailed design process is underway for the next two auctions in this roadmap, for the first Offshore auction (ORESS 1) and the third onshore auction (RESS 3). These designs will be developed taking account of lessons learned from the first two RESS competitions.
