— Ireland’s development process —
10-12 years
Ireland development process
10-12 YEARS
Marine spatial planning
1-2 years
Maritime Area Consents
2-3 years
Offtake auction
1-2 years
Grid connection
1-2 years
Consenting
3-4 years
FID and construction
2-3 years
The Irish Government’s Department for Housing, Local Government and Heritage oversees marine spatial planning in the Irish Exclusive Economic Zone (EEZ).
Ireland has a large EEZ with an area seven times its land mass. The west coast of the country reaches 200 nautical miles from the coast into the Atlantic Ocean. The country’s waters vary in depth and so are suitable for fixed and floating wind projects. On the west coast where waters are deep, floating wind is expected to dominate.
The legislative basis for marine spatial planning in Ireland is set out in the Maritime Area Planning Act (2021). This set out a hierarchical forward planning structure in accordance with the Maritime Spatial Planning Directive (MSD) which has the National Marine Planning Framework (NMPF) at its apex. The NMPF sets an overarching roadmap for the fair use of Irish waters for all maritime-based activities until 2040.
Renewable energy development in the maritime area will be deployed in designated areas which have been specifically identified as suitable for offshore wind development. These areas will be identified in designated maritime area plans (DMAPs) prepared in compliance with the MSD and the MAP Act.
The new Maritime Area Regulatory Authority (MARA) is the organisation responsible for awarding maritime area consents (MACs). MACs for offshore wind will be awarded on a competitive basis to suitable ORE projects located within a DMAP and will grant the holder the right to non-exclusive use and occupation of a specified area of the maritime area for the development and operation of the offshore wind project for a specified term.
The developer was required in ORESS 1 to apply for site investigation permits to scope a potential site and conduct preliminary site assessments before it can apply for a MAC. For future phases however, it is expected that the state will conduct preliminary site assessments.
Key stakeholders involved
Relevant policy documents and legislation
- National Marine Planning Framework (2021)
- Maritime Area Planning Act (2021)
Ireland’s sea bed leasing process was overhauled in 2021. The new regime is laid out in the Maritime Area Planning Act which aims to simplify the process.
For the maritime area beyond 3 nautical miles, sea bed leases, or Maritime Area Consents (MACs), are awarded and managed by the MARA. For Phase 1 projects MACs were awarded in December 2022 by the DECC Minister as MARA was yet to be established.
MACs give the developer exclusive or non-exclusive rights to occupy a maritime area but do not permit development, which is covered by permits obtained later. The MACs in ORESS Phase 1 awarded the developer non-exclusive rights for 45 years.
MAC applications are scored against certain criteria, including the price, whether the applicant is suitable, the level of preparatory work that has already been conducted, and the level of stakeholder engagement done in relation to the project. The MAC may also be granted on a conditional basis. When reviewing the applications, MARA review the MAC criteria against the auction terms and conditions to ensure they remain fit for purpose.
For the upcoming ORESS 2 auctions, Ireland is likely to operate a one-competition model, in which sea bed rights and route to market are offered together in the same auction, though administered by two different independent authorities (MARA and the Department of Environment, Climate and Communications (DECC)). This is still subject to consultation, however. Future offtake auctions beyond ORESS 2 may be structured differently.
Key stakeholders involved
- Local coastal planning authorities
- Maritime Area Regulatory Authority
Relevant policy documents and legislation
- Maritime Area Planning Act (2021)
-
Maritime Area Consent (2022)
The scheme is a contract for difference (CfD) structure, giving the developer security by earning a flat rate on the energy they produce. The length of support under the first auction is 20 years. The process is a competitive auction designed to be in line with CfD auctions in other European markets.
The Department of the Environment, Climate and Communications (DECC) oversees RESS auctions, with the state state-owned TSO EirGrid facilitating.
Ireland’s first offshore wind auction, ORESS 1, was held in April 2023. The average price of the winning bids was €86/MWh, lower than expected and significantly lower than the maximum bid price of €150/MWh.
Unsuccessful applicants to ORESS 1 were given the opportunity to secure corporate power purchase agreements as alternative means of revenue.
Further offshore auctions are planned to be held in the coming years. DECC are also developing the policy for Ireland’s Future Framework for the longer-term development of offshore renewable energy, including plans to kickstart floating offshore wind to be in development by 2030.
Key stakeholders involved
Relevant policy documents and legislation
Ireland’s state-owned transmission system operator (TSO) (EirGrid) is responsible for facilitating grid connections for offshore projects.
The details of the grid connection policy were issued in 2022 by the Commission for Regulation of Utilities (CRU), Ireland’s energy and water economic utility regulator.
EirGrid undertakes a Grid Connection Assessment (GCA) in accordance with the process set out by the CRU. A GCA was a necessary requirement for each ORESS 1 project to qualify for a full grid connection offer from EirGrid.
Grid connection offers are issued to the developer within two years of a successful auction bid.
All transmission assets for Phase 1 projects will be built by the developer and will be transferred to EirGrid at an agreed stage. For the second ORESS auction, off Ireland’s south coast, EirGrid as TSO will be responsible for developing the transmission assets. This approach may be subject to change for later auctions and future ORE development.
Key stakeholders involved
Relevant policy documents and legislation
The new consenting process aims to be streamlined by only requiring developers to acquire a MAC for the use and occupation of a part of the maritime area and a development consent. A MAC alone does not permit development of the project, which is subject to further consents.
Once a developer has acquired a MAC it must submit a planning application to An Bord Pleanála, Ireland’s national independent planning body, to receive development consent.
The developer is responsible for preparing a robust Environmental Impact Assessment Report to enable An Bord Pleanála carry out an Environmental Impact Assessment. Where the developer needs to undertake environmental surveys or site investigations it will need to first obtain a licence from MARA.
Projects are expected to take 18 to 24 months to get development consent, but this time could be extended should the consent be legally challenged under the Judicial Review process.
Key stakeholders involved
Relevant policy documents and legislation
FID is the final critical milestone in project development and indicates the project has secured the necessary funding and commitments to proceed with the construction phase.
For the project construction, the developer typically subcontracts the construction of different wind farm components to specialist construction firms.
The construction process typically takes 2 years.
Key stakeholders involved
- Offshore wind developers
- Private financial institutions
- Construction contractors