Ireland's state-owned grid EirGrid has released the final auction results for the deployment of 1.9 GW of renewable energy capacity under its Renewable Electricity Support Scheme 2 (RESS 2).
The capacity awarded in the auction includes 414 MW of onshore wind and 1,534 MW of solar. The weighted average price of the winning bids was €97.87 (~$101.80)/MWh. The annual production of these projects is estimated at 2,748 GWh.
Some of the most significant winning bids in the auction were the 120 MW solar project by Soleire Renewables and the Ballymoneen project's Special Purpose Vehicle (SPV) and Clonfad Solar's 100 MW solar project.
A total of 153 bids were submitted during the RESS 2 qualification process. According to the Minister of Environment, Climate and Communications, 130 projects, including 15 community projects, were eligible for the auction. 3 projects were unqualified, and 20 projects were officially withdrawn from the process.
RESS 2 uses a competitive auction process to determine which generators will be supported. For successful projects, support usually applies for about 15 years. The successful project represents a potential increase of almost 20% of Ireland's current renewable power generation capacity. They will be delivered between 2023 and 2025.
RESS is a government initiative to support renewable electricity projects. This is a key component of the 2021 Climate Action Plan and an important step towards Ireland's goal of achieving at least 80% renewable electricity by 2030.
The auction is the second of at least five auctions expected to take place between 2020 and 2025. These auctions provide a means for renewable energy developers, including solar and offshore wind projects through dedicated offshore auctions, to plan and develop their projects. They also allow Ireland to take advantage of new technologies as they emerge.
Successful projects in the RESS 2 auction will also contribute to Ireland's contribution to the EU-wide 2030 renewable energy target and Ireland's target to reduce greenhouse gas emissions by 51% by 2030 and the associated carbon budget.
In August 2020, EirGrid released provisional auction results for RESS 1. The weighted average strike price of provisional successful bids for all projects was €74.08 (~$87.03)/MWh. The average price for solar projects was €72.92 (~$85.66)/MWh, while the average price for community projects was €104.15 (~$122.35)/MWh.
In 2021, renewable energy will replace fossil fuels as the main energy source in the EU. Denmark has the highest share of wind and solar with 62% of its electricity demand, followed by Ireland with 35%.
