Dáil Éireann Debate, Thursday - 2 July 2026
199. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment to provide a detailed breakdown of the funding he has allocated to accelerate the delivery of offshore wind broken down by programme in each of the years from 2020 to date, in tabular form; to report on progress toward 2030 target; his views that the measures introduced will be sufficient to reach this target; and if he will make a statement on the matter. [50408/26]
View answerMy Department does not allocate funding for the development of offshore wind farms. Rather, projects successful in the State's ORESS (Offshore Renewable Electricity Support Scheme) offshore wind auctions may be financially supported through a two-way Contract for Difference (CFD) mechanism.
As a CFD, payments may be made by either party to the other depending on the relationship of market prices to the contracted strike price. Any payments due are paid to the electricity supplier and are only made when the market price falls below the indexation adjusted strike price as submitted at auction. Such payments are funded through the Public Service Obligation Levy.
The ORESS support period only begins once the wind farm reaches commercial operational and this is anticipated in the early 2030s.
Five offshore wind projects are presently in development off our East coast. All five have submitted planning applications and first determinations from An Coimisiún Pleanála are anticipated before the end of 2026, with the others to follow in 2027. Subject to planning approval, I anticipate that some of these projects will be in construction by 2030 and operational in the early 2030s.
The 900 MW Tonn Nua project off the coast of Waterford is progressing well since approval in 2025. My Department is making preparations to bring the remaining three South Coast DMAP sites to auction over the next few years, followed in due course by sites to be designated through the National DMAP.
The international market situation for offshore wind has changed much since Ireland's first offshore wind auction in 2023. Prices in the supply chain have increased, many offshore wind developers have rationalised their operations and now have a more risk averse investment outlook, and many jurisdictions have seen failed auctions for various reasons. This changed market environment presents challenges for all nations in progressing their offshore wind ambitions. I am maintaining a regular dialogue with our offshore wind industry, and in particular our Phase 1 projects, as we navigate these challenges.
