The Tonn Nua auction, scheduled for early 2025, will procure 900 megawatts of clean energy from the site off the south coast of Ireland. This project is expected to generate substantial savings in CO2 emissions, estimated at 1.8 million tonnes annually.
Building on the success of the inaugural ORESS 1 auction, which secured over 3 gigawatts of offshore wind capacity, the Tonn Nua auction is poised to further bolster Ireland's renewable energy landscape.
The Tonn Nua auction will be the first to be held within the South Coast Designated Maritime Area Plan (SC DMAP), a comprehensive spatial plan that has undergone extensive environmental assessment and public consultation. This strategic approach ensures that offshore wind development is carried out responsibly and sustainably.
Including the Tonn Nua auction site, the DMAP identifies four maritime areas off the south coast in which offshore wind development will take place over the next decade. All four maritime areas are located off the Cork, Waterford and Wexford coast. The SC DMAP is a landmark development in forward spatial planning and a game-changer for how we manage and plan our extensive maritime area. The process is central to the plan-led approach to ORE, adopted by Government last year. This approach will ensure that ORE developments will be led by designated maritime area plans identified by Government and approved by the Oireachtas. Protecting the marine environment and biodiversity and supporting citizens reliant on the sea for their livelihood are central to the sustainable development of the State's ORE potential.
Economic opportunity for the South Coast
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The DMAP will deliver real opportunities for substantial regional development along the South Coast. An independent analysis has highlighted these potential economic benefits and employment opportunities associated with implementing the Plan - which could deliver inward investment of €4.4 billion and an estimated 49,000 full-time equivalent (FTE) years of employment to the Irish economy. The analysis further highlights that more than 65% of inward investment and employment opportunities should be captured by the south coast region. Through establishing a pipeline of future offshore wind development areas, the South Coast DMAP also brings certainty to Ireland's burgeoning offshore wind industry, which will deploy the investments needed to accelerate the green energy transition in Ireland.
Tonn Nua will also deliver a community benefit fund of €140 million over a 20-year period
Tonn Nua will also see a community benefit fund established by the winning auction bidder, who will pay roughly €7m per year into the fund over 20 years to communities of the south cost – totalling €140 million. The fund will support the sustainable environmental, economic, social, and cultural well-being of the local community, with grants to local clubs and other community groups and projects.
Welcoming the government's approval of the auction terms and conditions, Eamon Ryan, Minister for the Environment, Climate and Communications said: "Approval of the Tonn Nua auction terms and conditions is a hugely important milestone as we look to increase our share of renewable electricity to 80% by 2030. By providing a long-term source of secure indigenous green energy, the deployment of offshore renewable energy will ensure that Ireland continues to play our part in addressing the escalating global climate emergency.
"It is a further response to the twin challenges of energy security and affordability. This auction will bolster the energy security of Ireland, safeguarding the electricity needs of our homes, hospitals, and businesses.
"I have every confidence that Tonn Nua will build upon the success of our first offshore auction in 2023, ORESS 1, which overperformed all expectations and will save Irish electricity consumers hundreds of millions of euros every year. Offshore wind is good for customers, good for the environment and good for business."
Commenting on the approval of the SC DMAP, Minister Ryan added: "The approval from the Oireachtas for this Plan is also hugely significant milestone for Ireland and the South Coast region – and evidence that Ireland is showing real leadership in the marine space. While allowing the State to protect our marine environment and biodiversity, it will also facilitate co-existence between offshore and other marine users and activities – such aquaculture; and commercial fishing; tourism and recreation.
"Our engagement with local communities and key marine stakeholders during this plan's consultation period has been unprecedented and has been central to the development of this plan. I would like to thank all of those who met with our officials at town hall meetings, in local authority offices, on the quayside, in schools and in their workplaces over the last 12 months.
"Ireland has enormous offshore wind potential – not only to deliver cheaper, cleaner and more secure energy to our homes and businesses – it has the potential to deliver tens of thousands of new green jobs for many communities across the State. By creating a world-class marine planning and regulatory environment, it will send the right signals to industry and investors. This will also give certainty to the public about what development should happen and where they will take place."
