ESB-Ørsted secure contract for South-East windfarm Tonn Nua
ORESS Tonn Nua will be built near Dunmore East, Co Waterford.
ESB and Ørsted have secured the Government contract to develop an offshore windfarm off the coast of Waterford.
The State electricity company and Danish group are partnering to create the windfarm development site at Tonn Nua, near Dunmore East, with their €98.72 per megawatt-hour bid.
Tonn Nua was identified within the South Coast Designated Maritime Area Plan (SC-DMAP) as the exclusive site for Ireland’s second offshore wind auction (ORESS Tonn Nua).
The development aims to deliver approximately 900 megawatts of additional electricity which could power almost one million homes with sustainable energy.
On Wednesday, November 27, the Department of Energy confirmed that they provisionally awarded a Joint Venture by ESB and Ørsted, the rights to develop the Tonn Nua site.
The cost of the development is estimated to be in the €2-4 billion range.
Jim Dollard, Executive Director Generation & Trading at ESB, commented: “ESB is delighted with the outcome of the ORESS Tonn Nua auction. It secures a clear pathway for the development of a significant project off the coast of County Waterford marking another important step toward Ireland’s renewable energy and Net Zero ambitions. We look forward to working with our partners to deliver a project that provides significant energy security and price certainty for Irish consumers.”
Alana Kühne, Head of Region Europe Development at Ørsted, said: “We commend the Irish government for running a successful auction continuing the support for the development of offshore wind in Ireland. Offshore wind will play an important part in the future Irish energy system ensuring green, affordable and secure energy. We will continue to work with our joint venture partner ESB to carefully assess and progress this early-stage development opportunity, including ensuring that the project lives up to our value creation criteria.”
Currently, the project is seeking Maritime Area Consent (MAC) and Marine Usage Licence (MUL) from the Maritime Area Regulatory Authority (MARA) in order to commence surveying and assessments, ahead of submitting a planning application for the development. The fees relevant to the MAC will accrue in excess of €6 million to the State per annum for the term of the project.
A 'community benefit fund' will be established to assist the 'relevant communities', with a contribution of €2 per megawatt (approximately €5-7 million) per annum from the time of operation.
Under the Contract for Difference with Eirgrid, Tonn Nua offshore wind farm must be operational by 1 January 2037.
