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Update on Ireland's Renewable Electricity Support Scheme (RESS)

The Renewable Electricity Support Scheme (RESS) aims to help Ireland achieve its renewable energy targets for 2030, focusing on community ownership, technology diversity, and cost competitiveness. The auction structure allows for technology-neutral participation with incentives for generation diversity. Key elements include price certainty, revenue stacking, and realistic delivery timelines. The Climate Action Plan 2019 outlines Ireland's decarbonization pathway, with key statistics projecting significant growth in renewable energy sources by 2030. The timeline for RESS actions includes offshore auctions and pre-qualification stages, with industry updates emphasizing community benefits and engagement.

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Update on Ireland's Renewable Electricity Support Scheme (RESS)

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  1. Renewable Electricity Support Scheme (RESS) Update Renewable Electricity Support Scheme (RESS) Update Noel Cunniffe, Head of Policy 12 September 2019 IWEA Offshore Conference 2019

  2. Previously on RESS… •The new RESS will help deliver Ireland’s contribution to the EU-wide binding renewable energy target of 32% RES out to 2030 •Seeks to deliver: • Ireland’s renewable electricity ambitions out to 2030 • Increased community ownership and partnership • Increased renewable technology diversity • All within a cost competitive framework •The RESS High Level Design paper was published in June 2018 •Set out for RESS to achieve 55% RES 55% RES- -E E by 2030 & first auction in 2019 2019

  3. RESS High Level Design Overview Auction structure is Pay Auction structure is Pay- -as as- -Clear: Clear: • 2-way Contract for Difference Technology Neutral Auctions: Technology Neutral Auctions: • Generation diversity encouraged through Technology Caps within Price Ranges To participate at auction: To participate at auction: • Planning consent and grid offer are required • Meet technology, financial, and community eligibility requirements • Place bid bonds Community Engagement: Community Engagement: • €2/MWh Community Benefit • Mandatory Community Investment Offering • Ring-fenced volumes for community-led projects

  4. IWEA Submission on RESS Auction Design – January 2019 IWEA and Pöyry produced a Position Paper for RESS Auction Design IWEA and Pöyry produced a Position Paper for RESS Auction Design Price Certainty •Indexed Pricing •Stable Reference Price Contract Duration •Longer durations reduce merchant risk Manageable Risks •Late delivery gradually erodes value Revenue Stacking •Should be allowed to include CRM, DS3 & GoOrevenues •Clean Energy Package Allows for revenue stacking Delivery Dates •Realistic delivery timelines which encourage competition

  5. Fast Forward to the Climate Action Plan 2019 •Ireland's Decarbonisation Pathway Dashboard to 2030 2030 Electricity Key Statistics 2030 Electricity Key Statistics •70% RES-E 3.5 GW Offshore 8.2 GW Onshore •3.5 GW Offshore •8.2 GW Onshore •0.4 – 1.5 GW Solar •600,000 Heat Pumps •1 million Electric Vehicles

  6. Climate Action Plan 2019 – RESS Actions

  7. Climate Action Plan 2019 – RESS Actions – Offshore Auctions

  8. RESS Timeline as it stands… Offshore Offshore   Offshore Offshore   Offshore Offshore   Q2 2024 Q2 2024 RESS 4 Pre-Qualification December 2019 December 2019 RESS 1 Pre-Qualification Q2 2022 Q2 2022 RESS 3 Pre-Qualification Q1 2021 Q1 2021 RESS 2 Pre-Qualification 2019 2020 2021 2022 2023 2024 May / June 2020 May / June 2020 RESS 1 Auction Q2 2021 Q2 2021 RESS 2 Auction Q3 2024 Q3 2024 RESS 4 Auction Q3 2023 Q3 2023 RESS 3 Auction Offshore Offshore   Offshore Offshore  * * *If sufficient *If sufficient competition competition Offshore Offshore  * * *If sufficient *If sufficient competition competition

  9. How will revised targets impact RESS volumes? 50 Approximately equivalent to 2.5 GW of wind generation 45 40 35 30 15% RES-E Gap TWh 25 Increased RESS 20 15 Or 10 Corporate PPAs? 5 0 2020 Target - 40% RES-E 55% RES-E 2030 Target - 70% RES-E Existing Renewables (REFIT) New Renewables (RESS HLD) RESS Gap Non-RES

  10. DCCAE Industry Update Session •Consultants recently appointed to support RESS auction design and implementation •Update session to be held on RESS on Friday 13th September Friday 13th September •Expecting DCCAE to provide an update on: • Terms & conditions of RESS auctions • State Aid Process • Legal / Legislation • Community aspects of RESS – Community Benefit, Investment and Led Projects •Anticipating further industry engagement in the lead up to RESS 1 pre-qualification in December

  11. IWEA Outstanding Questions for RESS • New RESS Timelines & Volumes, State-Aid Timelines, Competition Factors, Pre-Qualifications, Technology Specific Caps Volumes & Timing Auction Design • Delivery Dates, Strike Price Indexing, Connection Policy & Grid Community Benefit • Community Benefit Schemes & Community Code of Practice Community Investment & Community-led Projects • Community Investment Offerings & Support Structures, Learnings from other European Community Auctions

  12. Next time on RESS… Check back at IWEA’s Autumn Conference in October! Check back at IWEA’s Autumn Conference in October!

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