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

I thank the Acting Chair and Senators and welcome the visitors in the Gallery.

On behalf of the Minister for the Environment, Climate and Communications, I welcome this opportunity to seek the support of Senators for these long-term Government commitments on the development of offshore renewable energy in this State. With a sea area that is seven times its landmass, the realisation of Ireland's offshore renewable energy potential can have a transformational impact on the future of this State. It is the intention of the Government commitments before the House today to provide a structural long-term framework that enables the realisation of this potential. These commitments can further ensure that harnessing our offshore resource delivers necessary wide-ranging and equitable societal, environmental and economic benefits that will be felt throughout the State. The preliminary results of Ireland's first offshore wind auction, offshore renewable electricity support scheme, ORESS, 1, which were announced several weeks ago, mark a pivotal moment in our clean energy transition. With a combined capacity of more than 3 GW, ORESS 1 will deliver sufficient offshore wind to power more than 2.5 million Irish homes. This is by far the largest volume of renewable energy Ireland has ever procured at a single auction. At a price of €86 per megawatt hour, the average auction clearing price is one of the lowest seen in any global emerging offshore wind market. It compares with an average wholesale electricity price of more than €200 per megawatt hour during the past 12 months. As we know from the experience in other European countries, prices in future offshore wind auctions will continue to fall.ORESS 1 is the clearest signal yet that the future development of offshore wind in Ireland will deliver an affordable, sustainable and secure indigenous alternative to imported fossil fuels over the decades to come. At a local level, it is clear that the development of offshore wind be overwhelmingly positive for rural, coastal and local communities. This is due to the creation of sustainable local jobs and through massive inward investment.

Regarding the scale of the required capital investment, the projects that got through the ORESS 1 auction will amount to around €9 billion of investment in the State over the coming five years. At the same time, the mandatory community benefit funds for these projects will deliver more than €24 million in annual payments for local communities for up to 20 years. ORESS 1 is the culmination of a multi-year Government programme of policy, legislative and regulatory frameworks which provide the framework for future offshore wind development in this State.

I also wish to highlight the significant contributions of EirGrid, the Commission for Regulation of Utilities, CRU, and other State bodies and agencies towards arriving at Ireland's first offshore wind auction. As highlighted by today's debate, we are now accelerating delivery of the next phase of offshore wind development in Ireland, with these ambitious long term commitments required to be carried through by this Government and then by future administrations.

Consistent with our European Union peers, Government is designating specific parts of our maritime area for renewable energy production. Development will be managed in a plan-led, strategic and sustainable way. We will achieve our energy objectives in a manner that fully provides for equitable societal and economic impacts, and in consideration for the interest of local coastal communities, including those engaged in fishing and seafood production.

The development of offshore renewables will also take place with full consideration for the protection of marine environment and biodiversity. There is no greater single threat to biodiversity than global warming. It is for this purpose that Government is accelerating development of designated maritime area plans, including an initial south coast plan to enable the start of Ireland's second ORESS auction which will happen in early 2024.

As a signal of Ireland's increased ambitions, we are prioritising the work of the new State agency, the Maritime Area Regulatory Authority, MARA, which will be formally established on 17 July. Prioritisation will follow through to An Bord Pleanála, within which a dedicated marine directorate has been established to process offshore project applications.

Through development of onshore and offshore electricity grids, and exploiting opportunities to develop floating wind, we will maximise the resource potential of our Atlantic waters. This will benefit those communities on our southern and western seaboards.

Recognising their crucial future role, Government will support the development of indigenous ports through a new national ports policy. To accelerate this and other initiatives, we are implementing a long-term, whole-of-government offshore energy programme, driven by the offshore wind delivery task force. When it comes to offshore renewables, this Government will continue to deliver.