Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

Earlier this week, the Minister, Deputy Eamon Ryan, announced the provisional results of the third onshore RESS auction, RESS 3. The successful projects, mostly solar PV projects, represent a 12% increase in Ireland’s renewable energy capacity from current levels. This is a positive result for the climate, for security of supply and for maintaining our ambitious programme to support decarbonisation of the wider economy. While these are lower volumes than previous auction rounds, RESS 3 targeted mature, shovel-ready projects that all have planning permissions and grid connection offers and are expected to deliver rapidly, by early 2027 at the latest. A fourth, and larger, RESS auction is due to take place in 2024.

The auction results will help to bolster energy security and system resilience, will contribute to emissions reductions over the second carbon budget period and will continue a steady roll-out of renewable energy projects to support our EU renewable targets in 2027 and 2030. The auction volumes underpin the need for a much stronger pipeline of onshore wind and solar projects coming through the grid connection and permitting processes.

It also highlights the urgent and critical need for greater alignment between local plans and renewable energy targets to support investment in and delivery of renewable energy projects.

The average bid price in the auction was slightly higher than in RESS 2 last year. This is attributable to a number of factors, including international inflationary pressures in input costs as well as increases in the cost of capital - this affects borrowing costs, which make up a significant portion of funding for solar and wind farm projects - in line with European Central Bank, ECB, rate rises. My Department and I have met industry representatives over recent months to discuss these pressures and other matters as part of the RESS 3 consultation process. This process will continue through the next auction round. In addition, individual RESS auctions are not the only route for projects. Developers are also free to choose to enter later auctions or take other routes to market, such as corporate power purchase agreements.

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