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.
According to the International Energy Agency there has been significant inflation of input costs for wind and solar electricity generation projects over the last 18 months. It is estimated that the overall investment costs of new utility-scale PV and onshore wind plants are from 15% to 25% higher in 2022.
While bid prices were higher than the first auction, owing mainly to international inflationary pressures in input costs, 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.
Renewable energy delivered under the RESS 2 auction will shield consumers from high prices, reduce our dependency on imported fossil fuels in the context of the phasing out of Russian energy imports across the EU and contribute to communities across the country. More broadly, renewable energy generation such as wind and solar lowers wholesale electricity prices during periods when they are generating power.
Community-led projects can have higher costs than developer led projects due to economies of scale, and reliance on external services to deliver projects. The Community Enabling Framework for community-led projects includes a package of supports including technical, financial and legal services to assist communities in navigating the challenging terrain of electricity generation.
The electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive. State owned enterprises and private sector companies operate within this competitive framework to deliver the overall lowest cost to consumers over the lifetime of the investment.
