Ireland is targeting 5GW of offshore wind generation by 2030 as part of its plan for 80% renewable electricity and a 51% reduction in greenhouse gas emissions by the end of the decade.
The CRU decisions set out to ensure prospective bidders have all the necessary information well in advance of the next state auction, known as Tonn Nua, and any future phase-two auctions.
On 31 October, Ireland’s government approved the terms and conditions for the Tonn Nua auction, the country’s second round under the offshore renewable electricity support scheme (Oress). The previous round awarded 3.1GW of capacity in May 2023 from four offshore wind farms.
The Tonn Nua site is located off Ireland’s south coast. The auction bidding process is expected to take place in early 2025, offering up to 900MW for development.
The first CRU decision paper outlines a connection pathway with clear project milestones, setting out how Tonn Nua and other future phase-two offshore wind projects can secure and execute grid access.
It also sets out the obligations on state-owned transmission system operator EirGrid to facilitate grid access to the transmission system for these projects, including the sequencing by which EirGrid will complete and issue a grid connection information (GCI) pack ahead of auction.
The second CRU decision paper outlines the grid connection charging policy for phase two, requiring wind farm operators to pay an offshore grid transmission use of system (OGTUoS) charge that will be fixed for 30 years.
This is intended to cover the costs associated with the development of offshore transmission assets constructed by EirGrid while streamlining the grid connection process by reducing administrative burdens and accelerating project timelines.
“With the accelerated move in Ireland to a plan-led approach for phase two, whereby the state selects the site and EirGrid constructs the grids assets, it is important that the fundamentals of grid access are known and well understood by the market prior to the first phase-two auction,” said Richard Murphy, energy law expert at Pinsent Masons.
Certainty across areas such as method and cost of connection, timings and available capacity will be required pre-auction as part of the grid connection information pack from EirGrid, he added.
“The more certainty provided on the grid before the Oress Tonn Nua auction, the better – as this will lead to better outcomes for the potential bidders and Irish energy consumers through lower Oress auction bids. If there are any variables or uncertainties, they will have to be priced in,” he said.
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