ESB and Ørsted Joint Venture wins the provisional rights to develop the Tonn Nua site in offshore wind auction
The Department of Climate, Energy and the Environment (DCEE) has today awarded ESB and Ørsted, the provisional rights to develop the Tonn Nua site off the coast of County Waterford.
Currently in an early phase of development, once completed, the site will span 306 square kilometres generating enough energy to power almost one million homes annually and play a critical role in Ireland’s transition to net zero and national energy security.
Under Ireland’s plan-led approach to offshore wind development, Tonn Nua was identified within the South Coast Designated Maritime Area Plan (SC-DMAP) as the exclusive site for Ireland’s second offshore wind auction (ORESS Tonn Nua). The contract facilitates the development of a 900 MW fixed-bottom offshore wind farm for the Tonn Nua site. It also enables the successful bidder to apply for a seabed lease and grid connection for the site.
Currently in an early phase of development, once completed the site will span 306 square kilometres with expected capacity output of approximately 900MW, enough energy to power almost one million homes based on the wind prevalence in the area. First power from the site is expected 10 years from now, with a final investment decision expected in 2031.
Jim Dollard, Executive Director Generation & Trading at ESB, commented:
“ESB is delighted with the outcome of the ORESS Tonn Nua auction. It secures a clear pathway for the development of a significant project off the coast of County Waterford marking another important step toward Ireland’s renewable energy and Net Zero ambitions. We look forward to working with our partners to deliver a project that provides significant energy security and price certainty for Irish consumers.”
Alana Kühne, Head of Region Europe Development at Ørsted, said:
“We commend the Irish government for running a successful auction continuing the support for the development of offshore wind in Ireland. Offshore wind will play an important part in the future Irish energy system ensuring green, affordable and secure energy. We will continue to work with our joint venture partner ESB to carefully assess and progress this early-stage development opportunity, including ensuring that the project lives up to our value creation criteria.”
The next step for the project is to seek a Maritime Area Consent (MAC) and Marine Usage Licence (MUL) from the Maritime Area Regulatory Authority (MARA) in order to commence surveying and assessments, ahead of submitting a planning application for the development. The fees relevant to the MAC will accrue in excess of €6 million to the State per annum for the term of the project. The development will also see the establishment of a significant community benefit fund of benefit to relevant communities, with a contribution of €2/MWh (approximately €5-7 million) per annum from the time of operation.
