Dáil Éireann Debate, Tuesday - 13 January 2026
349. Deputy Barry Ward asked the Minister for Climate, Energy and the Environment the steps taken when there are no bids in auctions related to the construction of offshore wind infrastructure projects; and if he will make a statement on the matter. [74747/25]
Amharc ar fhreagra350. Deputy Barry Ward asked the Minister for Climate, Energy and the Environment the number of offshore wind infrastructure project proposals that have received no formal bids in relation to their construction; and if he will make a statement on the matter. [74748/25]
Amharc ar fhreagraI propose to take Questions Nos. 349 and 350 together.
Ireland's two offshore wind auctions to date have been a great success. Our first auction in 2023, known as ORESS 1, had six bidders, each offering a defined site and offer quantity into the auction. Four bidders were successful and were awarded ORESS support contracts. That auction surpassed market expectations with an average bid price of €86.09 per megawatt hour for the successful projects.
In December 2025, I was delighted to announce a joint venture from ESB and Orsted as the winner of Ireland's second offshore wind auction, known as Tonn Nua. In that auction, four parties bid for the right to develop a State selected site for a 900 megawatt wind farm, located in Ireland's first designated maritime area for offshore wind development, the South Coast DMAP. The winning bid from ESB and Orsted was €98.719 per megawatt hour, again surpassing market expectations.
Over the past year or so, the global offshore wind market has become quite volatile. Mature offshore wind markets such as the UK, Germany, Netherlands and Belgium have seen unsuccessful auctions with no bidders. The reasons for these unsuccessful auctions are varied with perhaps a common feature being prospective bidders' risk perceptions of the auction or related environment not being adequately mitigated in advance. The solution in other jurisdictions to unsuccessful auctions has generally been engagement with the market and a new auction with modified conditions.
My Department engages extensively with the market in designing our auctions, including through consultations and industry workshops. These engagements have led to various changes to draft auction terms and conditions, adapting to changed market conditions and appropriately addressing risks. International feedback on Ireland's auction design has been very positive in this regard.
