05/23/2022 | Press release | Distributed by Public on 05/23/2022 02:37
The Minister for the Environment, Climate and Communications, Eamon Ryan TD, today (20 May 2022) announced the provisional results of the second Renewable Electricity Support Scheme (RESS) auction.
RESS 2 includes a strong pipeline of community projects, with ten communities being supported to produce their own power and share in the ownership of Ireland's energy revolution.
The volumes procured set Ireland on the right trajectory to achieve the ambitious 80% renewable electricity target by 2030, set out in Climate Action Plan 2021. This also underpins Ireland's contribution towards an EU-wide 2030 renewable energy target and to Ireland's own target of a 51% reduction in its greenhouse gas (GHG) emissions by 2030 and related carbon budgets.
Meeting these targets can create roughly 7,020 jobs and contribute approximately €550 million additional gross value to the Irish economy through the onshore wind sector alone. A major expansion of solar energy will bring further economic and sustainable employment benefits across the economy for years to come.
The Programme for Government - "Our Shared Future" - recognises the importance of community involvement in energy projects. RESS 2 includes mandatory community benefit funds for all projects and a dedicated community projects category. The community benefit fund under RESS 2 will deliver approximately €7 million each year to sustainable community initiatives targeted at those communities living in close proximity to the projects.
Minister Ryan said:
I am pleased to welcome the provisional results of the second auction under the new Renewable Electricity Support Scheme [RESS]. While these results remain subject to Government approval, the second RESS auction delivers a huge volume of renewable energy to our grid, helping to protect households and businesses from high fossil fuel prices and contributing to Ireland's first carbon budget. International inflationary pressures have contributed to higher auction prices than under RESS 1 and these costs will need to be monitored. Renewable energy delivered under the scheme 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."
Key aspects of the results:
In conclusion Minister Ryan said:
Now is the time to accelerate renewables to meet our climate targets and to reduce dependency on fossil fuels and deliver benefits to communities across the country. Ireland is a world leader in onshore wind, with the third highest wind generation in the world. The RESS 2 auction continues to build on this and will diversify our energy supply with solar at scale. Higher prices for renewables are mainly driven by inflationary pressures across input costs and international supply chains constraints. However, renewables are still much cheaper than fossil fuel alternatives and will drive down costs of electricity to households and businesses."
The provisional results of the RESS 2 auction can be viewed here: https://www.eirgridgroup.com/site-files/library/EirGrid/RESS-2-Provisional-Auction-Results-(R2PAR).pdf.
ENDS
RESS Auctions
The frequency of future RESS auctions is dependent on the renewable electricity project supply pipeline, along with evolving market, locational and technological considerations.
RESS 2 is the second of a minimum of five envisaged auctions, to occur between 2020 and 2025 to deliver on 2030 targets. These auctions will provide pathways for renewable developers, including solar and offshore wind projects through dedicated offshore auctions, to plan and develop their projects. It will also allow Ireland to take advantage of new technologies as they emerge.
A roadmap of future auctions, which sets out the indicative timelines and volumes for 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.