The Irish Government recently published its highly anticipated Policy Statement on the Framework for Phase Two Offshore Wind1 ("the "Phase Two Policy Statement"), setting out the legal and regulatory framework which will apply to projects participating in the second phase of offshore wind development in Ireland (known as "Phase Two Projects").
Irish Offshore Wind Development - Progress to Date
The Phase Two Policy Statement follows the Irish Government's initial Policy Statement on the Framework for Ireland's Offshore Electricity Transmission System published in May 20212 (the "Initial Policy Statement"), which set out a three-phased approach to offshore wind development.
Since then, the Irish Government's primary focus has been to develop a legal and regulatory framework that can be used by the first phase of seven "Relevant Projects" (known as "Phase One Projects") and then by future rounds of Irish offshore wind development (with modifications to reflect 'lessons learned' from the Phase One Projects process).
Broadly, this first phase of development has included:
- the introduction of the Maritime Area Planning Act 2021 ("MAP Act") and the new State consent known as the Maritime Area Consent ("MAC");
- the granting of the first MACs to the Phase One Projects by the Minister for the Environment, Climate and Communications;
- the proposed establishment of a new regulatory body, the Maritime Area Regulatory Authority ("MARA") which will, amongst other things, take over the MAC permitting regime for all offshore development projects other than Phase One Projects (MARA is expected to be established in early 20233);
- the launch of the first offshore competition under the Renewable Electricity Support Scheme ("ORESS 1") - which is scheduled to complete in June 20234; and
- the granting of grid connection assessments ("GCAs") by the Transmission System Operator, EirGrid plc ("EirGrid"), which, subject to success in ORESS 1 and certain other conditions, are expected to form the basis of a formal grid connection offers.
Offshore Wind Development - Phase Two
The publication of the Phase Two Policy Statement is a critical next step in the establishment of a longterm Irish offshore wind regulatory regime. We have set out below some key points relevant to both Phase Two Projects and Phase One Projects which are unsuccessful in ORESS 1:
1. Plan-Led Approach for Phase Two Projects
The Phase Two Policy Statement provides that the locations of offshore wind projects and offshore transmission system infrastructure to be developed under Phase Two will be identified through the designation of Offshore Renewable Energy Designated Areas ("OREDAs"). This process will take place according to the legislative provisions for designation of Designated Marine Area Plans ("DMAPs") within the MAP Act.
While the transition to a plan-led approach for offshore wind projects has been a feature of the Irish Government's offshore policy since the introduction of the Initial Policy Statement, the emphasis on DMAPs at this relatively early stage of the development of the Irish offshore wind industry was not widely expected. The MAP Act contains provisions (not yet commenced) for the introduction of DMAPs, but a public consultation by the Department of the Environment, Climate and Communications ("DECC") on Phase Two of offshore wind deployment (including the potential selection process for Phase Two Projects5) had suggested that DMAPs may not be introduced until the subsequent phase of offshore wind development (as part of the long-term 'Enduring Regime').
Alignment with onshore grid capacity
The Irish Government has determined that the initial OREDAs for Phase Two will be geographically aligned with available onshore grid capacity on the South coast of Ireland, which has been identified by EirGrid. EirGrid has identified 700MW of capacity, split across two locations of approximately 350 MW each.
Future OREDAs may be developed during Phase Two (including areas off the East or West coasts) and this plan appears to be at least partially contingent on capacity that would be freed up once the outcomes of ORESS 1 are known (ie, if a Phase One Project is unsuccessful in securing a route to market via ORESS 1 or a Corporate Power Purchase Agreement ("CPPA")).
Designation of initial OREDAs
The Phase Two Policy Statement provides that the goal is for the initial OREDAs to be designated by the end of 2023, subject to environmental considerations.
OREDAs "will be designated according to legislative provisions" for DMAPs in the MAP Act. However, the distinction between OREDAs and DMAPs is not clear at this stage - eg, whether it is intended that DMAPs will sit within OREDAs, or if the concepts are one and the same. In any case, if the designation of OREDAs will follow the process for designating DMAPs under the MAP Act, including the various public consultation periods and Oireachtas approval, the timeline proposed by the Government for designating OREDAs may be challenging.
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Footnotes
2. Policy Statement on the Framework for Ireland's Offshore Electricity Transmission System, 2021, Department of the Environment, Climate and Communications
4. ORESS 1 Auction Timetable, February 2023, EirGrid plc
5. Offshore Wind Phase Two Consultation, December 2021, DECC
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