Ireland’s Department of the Environment, Climate and Communications (DECC) announced earlier this month that the RESS 4 auction had provisionally procured over 2 GWh, equating to approximately 1,334 MW of onshore renewable electricity. Of this, wind accounted for 374 MW and solar 960 MW, potentially boosting Ireland’s renewable energy capacity by over 20%. It also noted that the volumes secured were ‘significantly higher’ than those secured in the RESS 3 auction.

The average weighted bid price for the RESS 4 auction was €96.85/MWh, representing a lower average price than both the RESS 2 and RESS 3 auctions, according to DECC. The weighted average for wind was €90.47/MWh, and for solar €104.76/MWh.  

Wind Energy Ireland, the representative body for the Irish wind industry, welcomed the changes introduced by the Irish government to the design of the auction, such as new measures to reduce the impact of grid and planning delays. Those changes ‘allowed projects to bid in for a contract at a competitive price to deliver value for consumers’, it said. As a result, it noted that the average weighted bid prices were ‘lower than some had anticipated’, which was ‘positive news for Irish electricity consumers’. The average wholesale electricity price in Ireland over May to July was around €110/MWh, according to the Association.

However, Cornwall Insight says that although the provisional results showed ‘good progress’, its latest data analysis suggests the RESS 4 auction ‘fell short of critical 2030 targets’. Based on already existing and contracted capacity, approximately 4 GW of solar will be online by 2030, and just over 5 GW of onshore wind. ‘Despite the progress in the latest auction, this would leave the government 4 GW short of targets for both technologies. A total of 17 GW of installed onshore wind and solar capacity is needed by 2030 if Ireland is going to achieve its target of sourcing 80% of electricity from renewables by the end of the decade,’ it says.

The RESS 4 auction saw solar secure nearly double the capacity of the previous year – 960 MW, up from 498 MW in RESS 3. Onshore wind also saw a boost, with 374 MW secured, more than double the 148 MW procured in 2023. While the Cornwall Insight report acknowledged that these developments are ‘positive’, it went on to add that time is now running out.  ‘There are only two, at a push three, RESS auctions left to secure the necessary renewables; meaning if auctions continue at this rate, the government will fall short on its decarbonisation target,’ Cornwall Insight states.

Cornwall Insight Senior Consultant Ratnottama Sengupta, says: ‘An increase in renewables procured in this year’s auction, following last year’s disappointing outcome, shows that the government is listening and responding to industry concerns. While this auction will help bolster the number of renewables coming onto the grid and narrow the gap between current levels and our elusive 2030 targets, it is clear we are still playing catch-up.’

No hybrid projects were awarded a contract under the RESS 4 auction. Confusion over what is defined as a hybrid project and a lack of a national framework were cited by Cornwall Insight as key reasons.

‘The uncertainty surrounding hybrid projects only adds to the challenge,’ continues Sengupta. ‘These projects could be a game-changer for hitting renewable targets while ensuring our flexibility needs are met, but if the Department of Energy, Climate and Communications wants to encourage hybrid projects, they must examine current barriers and consider whether hybrid projects need to sit outside RESS or as a separate pot within the auction. Without a clear national framework and alignment on how hybrid assets are defined and how they operate it is clear Ireland will be missing out on this additional capacity.’