Minister O’Brien welcomes successful result of State’s second offshore wind auction

Tonn Nua auction secures highly competitive price compared to recent auctions internationally
Result shows international confidence in Ireland’s offshore wind industry
900MW of clean renewable energy can power almost 1 million homes, reduce energy prices, and heighten Ireland’s security of supply
Offshore energy project will bring jobs, community benefit funds and wider economic benefits
 
The Minister for Climate, Energy and the Environment Darragh O’Brien has today welcomed the provisional results of the State’s second offshore wind auction under the Offshore Renewable Electricity Support Scheme (ORESS). The extremely positive results mark another milestone moment in Ireland’s offshore renewable energy (ORE) ambitions, showing a vote of confidence internationally in Ireland’s ORE potential.
 
The Tonn Nua auction process invited renewable energy project developers to compete against each other, by bidding as low as possible, in order to win a contract to provide renewable electricity for a 20-year period. The result of the hugely competitive auction has surpassed expectation, with a renewable energy price secured of €98.719 per megawatt hour (MWh). This price compares very favourably to recent offshore energy auctions in other jurisdictions and the price secured in Ireland’s recent onshore RESS 5 auction. For comparison, the average wholesale electricity price in Ireland to date in 2025 is €114/MWh.
 
The winning applicant is Helvick Head Offshore Wind DAC, a joint venture partnership between ESB and Denmark-based renewable energy developer Ørsted. ESB is involved in two major offshore wind energy projects in Scotland. Ørsted operate offshore wind farms in Denmark, Germany, the Netherlands, Poland, Taiwan, the US, and the UK. In June 2023, ESB and Ørsted announced a 50/50 partnership to develop a pipeline of offshore wind development projects off the Irish coast.
 
The Tonn Nua auction was the first to be held for a site within the State’s first spatial plan for ORE development – the South Coast Designated Maritime Area Plan SC-DMAP. The Tonn Nua site (meaning ‘New Wave’) is located off the Waterford coast. It will procure 900 megawatts (MW) of clean energy, enough to power almost 1 million homes. It will save 1.8 million tonnes of CO2 emissions each year after its construction, making a sizable contribution to Ireland’s wider climate and renewable electricity targets. Tonn Nua is one of four maritime sites within the SC-DMAP identified for future offshore wind development.
 
The SC-DMAP was approved by the Oireachtas in October 2024 following a comprehensive environmental assessment process, and an almost year-long engagement process with coastal communities and key stakeholders, including fishers, environmental NGOs and Local Authorities. An independent analysis has highlighted that implementing the SC-DMAP will deliver considerable economic benefits and employment opportunities.
 
Welcoming the results, Darragh O’Brien, Minister for Climate, Energy and the Environment, said:
 
“The provisional results of the Tonn Nua auction mark an important milestone in the State’s offshore renewable energy ambitions. The highly competitive price secured represents positive news for Irish energy consumers and our nation, bringing us closer to overcoming the challenges of energy security and affordability, and towards achieving energy independence. It’s also a positive reflection of Ireland that we, as a country, can develop and produce enormous quantities of clean energy. It’s a clear sign that international companies are confident in Ireland’s ambition and infrastructure. Ireland has enormous offshore wind potential – not only to deliver 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. The deployment of offshore renewable energy will also importantly ensure that Ireland continues to play our part in addressing the climate change emergency.”
 
Minister of State with special responsibility for the Marine Timmy Dooley said:
 
“Ireland is already a wind energy success story. Today’s announcement is the next chapter in that story, and an exemplar project as we move towards a national DMAP for offshore renewable energy.  This is a key milestone in delivering a clear and sustainable framework for developing offshore renewable energy, balancing economic growth, environmental protection and community engagement to support Ireland’s transition to a low-carbon future.”
 
The Tonn Nua results announced today are provisional and are subject to the normal RESS confirmation processes. Final auction results will be announced on 9 December.
 
Community Benefit Fund provisions
 
Under the community benefit fund provisions of Tonn Nua, the successful project is required to make payments to local coastal communities in the vicinity of the development. The Tonn Nua fund established by the winning auction bidder will now see communities benefit from €140 million over a 20-year period, beginning before construction and continuing until after the site begins to produce renewable energy. The €7 million a year 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.
 
In May 2023, the results of Ireland’s first offshore wind auction, ORESS 1, was a breakthrough moment for the State’s ORE ambitions, with a hugely competitive price secured – at an average of €86.05/MWh. Five ‘Phase One’ projects that participated in ORESS 1 have submitted applications for planning consent with An Coimisiún Pleanála. Their collective capacity of 3.8GW represents more than 60% of Ireland’s present peak electricity demand.
 
The Government will now move towards making arrangements to bring the remaining three SC-DMAP sites to market, working closely with EirGrid to develop grid connection options. This will ensure a consistent pipeline of offshore developments will take place over the coming years.