Milestone in Ireland’s renewable energy journey as CRU publishes latest Phase 2 offshore wind decisions

The decisions set out to ensure that prospective bidders have all the necessary information well in advance of the next state auction, known as Tonn Nua, and any future Phase 2 auctions.

The first decision paper (43 pages / 1 MB), on a ‘connection pathway’, sets out how a Phase 2 offshore project can secure and execute grid access, with clear project milestones. The aim is not only to support the growth of the offshore wind industry but also underscore Ireland’s commitment to transitioning to a sustainable and resilient energy future. The paper also sets out the obligations on EirGrid to facilitate grid access to the transmission system for Phase 2 offshore projects. The CRU has also published a decision paper outlining the grid connection charging policy (40-page / 606KB PDF) for Phase 2.

Ireland has set a goal of installing five gigawatts (GW) of offshore wind generation by 2030, contributing to the broader objectives of achieving 80% renewable electricity and a 51% reduction in greenhouse gas emissions by the end of the decade. The Phase 2 policy is designed to facilitate this transition by providing a clear framework for offshore wind projects to connect to the national grid.

Richard Murphy, energy law expert at Pinsent Masons, said: “With the accelerated move in Ireland to a plan-led approach for Phase 2, whereby the state selects the site and EirGrid construct the grids assets, it is important that the fundamentals of grid access are known and well understood by the market prior to the first Phase 2 auction known as ORESS Tonn Nua.”

Importantly, the decision sets out the sequencing by which EirGrid will complete and issue a grid connection information (GCI) pack ahead of auction to any project seeking to participate in Tonn Nua, as well as any future Phase 2 auctions.

“Certainty across areas such as timings, method and cost of connection, and available capacity will be required pre-auction as part of the grid connection information pack from EirGrid,” Murphy said.

“The first Phase 2 auction will be hopefully fast upon us in Q1/Q2 2025, and accurate and reliable grid connection information will be a very important input to the financial models that create developers’ bids for the auction. The more certainty provided on grid before the ORESS Tonn Nua auction, the better as this will lead to better outcomes for the potential bidders and Irish energy consumers through lower ORESS auction bids. If there are any variables or uncertainties, they will have to be priced in,” he said.

The grid connection charging policy introduces an offshore grid transmission use of system (OG-TUoS) charge, which will be levied on offshore wind generators. The charge is intended to cover the costs associated with the development of offshore transmission assets to be constructed by EirGrid, the state-owned electric power transmission operator. The charge will be fixed for 30 years with aims of streamlining the process of connecting offshore wind projects to the grid, reducing administrative burdens and accelerating project timelines.

The fixed OG-TUoS is largely consistent with the approach for Phase 1 as well as the charge for onshore wind projects in Ireland. However, with EirGrid now doing this work, any such arrangements will require close collaboration with developers to ensure alignment.

“With the Tonn Nua terms and conditions to be finalised, it will be important that any interactions with the grid elements are properly addressed in the T&Cs in areas such as milestone dates and relief events for delays given the new division of roles and responsibilities with EirGrid,” Murphy added.