Dáil Éireann Debate, Tuesday - 13 June 2023
210. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications in the wake of ORESS 1 and in advance of ORESS 2, if consideration is being given to an auction process which assesses projects not solely based on price but on other factors such as track-record, readiness of project, planning approvals and so on; what the benefits of either approach are; and if he will make a statement on the matter. [27822/23]
View answerThe provisional results of the first offshore wind auction, ORESS 1, announced on 11 May 2023, were hugely positive, both in terms of the volume procured, over 3GW, and the average price secured, at €86.05 per megawatt hour, which is one of the lowest prices paid by an emerging offshore wind market in the world. The capacity procured in ORESS 1 will go a long way to ensuring that we achieve our Climate Action Plan targets for 2030 of at least 5 GW of offshore wind and 80 % of our electricity demand met by renewable energy sources.
While successful projects were ultimately selected in ORESS 1 based on price, in order to enhance deliverability of successful projects, this selection process was preceded by a rigorous qualification stage. This included the requirement for participating projects to hold a Grid Connection Assessment from EirGrid, with a Maximum Export Capacity corresponding to the ORESS 1 Offer Quantity, and a Maritime Area Consent, which itself required significant financial and technical capability assessments. The ORESS 1 process therefore included both quantitative and qualitative assessments.
My Department is already preparing the auction design for auctions which align with my Department's plan-led Phase Two offshore wind policy. The first of these auctions, ORESS 2.1, is planned to launch before the end of the year, and will award a contract within a Designated Maritime Area Plan (DMAP) site off our south coast. I expect to publish a public consultation document next month on the design of ORESS auctions in Phase Two. That document will set out the proposed auction design, including both quantitative and qualitative elements, and will invite stakeholders to submit their views to further inform the process.
The ORESS 2 design is likely to include a range of qualification criteria to be met by parties wishing to bid in the auction, including financial and technical criteria. All additional criteria, such as those suggested by the Deputy, will be considered as part of the ORESS 2 consultation and design process.
