Renewables Supports
Background
In 2018 the Irish Government approved the high-level design of the Renewable Electricity Support Scheme (RESS) including its ambitious community provisions. The design was based on two public consultations:
- The ambition set out in Ireland’s Energy White Paper to support communities,
- The emergence of energy communities as a key function of the recast Renewable Energy Directive within the EU Clean Energy Package.
The Government decision noted that the scheme would deliver on a broad range of policy objectives, including “the provision of pathways and supports for communities to participate in renewable energy projects”.
Renewable electricity is a central element of Ireland’s action on climate disruption as set out in the Programme for Government, the Climate Action Plan 2019, and the National Energy and Climate Plan 2021-2030. The RESS scheme ensures that we are on a pathway to meet our ambitious climate targets and lays the foundations of a thriving and cost-effective renewable electricity market. This will support the growth of the green economy, create both sustainable work opportunities and communities, and ultimately benefit the consumer as renewables become more cost effective.
Overview of RESS
The Renewable Electricity Support Scheme (RESS) has been designed to promote investment in renewable energy generation in Ireland. Ireland has set a target of 80% renewable electricity, and an EU-wide renewable energy target of 32%, by 2030. This competitive auction based, cost effective framework will help us achieve these targets.
In addition RESS will help deliver
- Community ownership and partnership and
- Increased renewable technology diversity
RESS AuctionsRESS auctions will be held at frequent intervals throughout the lifetime of the scheme. These auctions will be designed in line with trajectory targets identified in Ireland’s National Energy and Climate Plan (NECP).
Community aspects of RESS
There are two aspects of community participation in RESS.
- Community-Led Projects
- Community Benefit Funds
Community-Led Projects
Community-led projects can apply for RESS if they meet the following criteria*:
- Application must be made in conjunction with a Sustainable Energy Community (SEC)
- Project size must be between 0.5 and 5MW
- Fully (100%) owned by a Renewable Energy Community (REC)** – primary purpose is community benefit (environmental, economic or social) rather than financial profit.
- Community group must be based on open and voluntary participation
- Participation based on local domicile (within close proximity to the RESS project)
An application for a Community-Led Project must be made in conjunction with a Sustainable Energy Community member. The SEC must be identified in the Declaration of a Community-Led Project, together with a description of the relationship between the Applicant and the Sustainable Energy Community.
In February 2021 it was announced that Community-led projects seeking to apply to future RESS auctions, must be 100% owned by the community, as opposed to being majority owned as was the case for RESS-1.
Community Benefit Funds
A mandatory Community Benefit Fund must be provided by all projects successful in a RESS auction. The contribution is to be set at €2/MWh. The Fund will be aligned to incentivise investment in local renewable energy, energy efficiency measures and climate action initiatives.The community benefit funds under RESS-1 will deliver approximately €4.5million a year to sustainable community initiatives targeted at those communities living in close proximity to the RESS-1 Projects.
RESS project developers can now register their project and associated Community Benefit Fund on our Community Benefit Fund National Register.
Renewable Electricity Support Scheme 2
- providing an Enabling Framework for Community Participation through the provision of pathways and supports for communities to participate in renewable energy projects
- increasing technology diversity by broadening the renewable electricity technology mix
- delivering an ambitious renewable electricity policy to 2030
- increasing energy security, energy sustainability and ensuring the cost effectiveness of energy policy
The RESS 2 auction will support the achievement of the increased ambition of up to 80% renewable electricity by 2030 as set out under the National Development Plan and the policies and measures in the Climate Action Plan 2021. The RESS Scheme ensures that we are on a pathway to meet our ambitious climate targets and lays the foundations of a thriving and cost effective renewable electricity market. This will support the growth of the green economy, create sustainable work opportunities, and ultimately benefit the consumer as renewables become more cost effective.
Auction Update
The final results of the RESS 2 auction were approved by government and are available on the EirGrid website.
The successful projects in RESS 2 represent a potential increase of nearly 20% in Ireland’s current renewable energy generation capacity. They will be delivered between 2023 and 2025.
2,748 GWh of the 3,772 GWh bids submitted were successful in the auction. This equates to approximately 414 MW of onshore wind and 1,534 MW of solar.
RESS 2 Terms and Conditions
Key elements of the RESS include the following:
It has been designed to promote investment in renewable energy generation to contribute toward Ireland’s ambition of up to 80% renewable electricity, and an EUwide renewable energy target of 32%, by 2030, within a competitive auction based, cost effective framework.
It has been designed to deliver on a broader range of policy objectives including:
- the provision of pathways and supports for communities to participate directly in renewable energy projects o broadening the renewable electricity technology mix (the diversity of technologies); and
- increasing energy security, energy sustainability and ensuring the cost effectiveness of energy policy.
Running in tandem with Corporate Power Purchase Agreements (CPPAs), the RESS (in conjunction with previous renewable support schemes and CPPAs) will provide up to 80% renewable electricity by 2030. This will be subject to determining the costeffective level of procurement and based on the trajectory to meeting Ireland’s contribution to the EU 2030 renewable energy target set out in Ireland’s National
Energy and Climate Plan as well as the national targets set out in Ireland’s Climate Action Plan.
The RESS is being implemented through a series of renewable electricity competitions and in accordance with a renewable electricity auction roadmap, providing indicative timelines and capacities. The RESS is in line with new designs operated across the European Union. It has been designed in the context of the EU’s Clean Energy Package and in particular the Renewable Energy Directive’s provisions on renewable energy support schemes.
Three entities will be primarily involved in the implementation of the RESS. These are the Minister (when applicable the Minister’s designee acting through the Minister), the Regulatory Authority and the TSO.
The Minister is responsible for the design of the RESS policy (including the establishment of RESS competitions), decisions with respect to the RESS auctions and the development of terms and conditions applicable to each RESS auction. The Minister is also responsible for setting clear dates and rules for the delivery of projects as provided for in the RESS 2 Implementation Agreement in order to ensure high project realisation rates.
The Regulatory Authority is responsible for advising the Minister with respect to the potential availability of RESS supply for each RESS competition, competition parameters for each RESS auction, appointing and overseeing the Auction Monitor and Market Auditor, and for ongoing administration and calculation of RESS payments through the PSO Levy in accordance with provisions set forth in the terms and conditions of each RESS auction by the Minister. The TSO is responsible for administering the RESS competitions in accordance with provisions set forth in the terms and conditions of each RESS competition and pursuant to Public Service Obligations imposed under Section 39 of the Act.
The specific responsibilities to be fulfilled by the TSO with respect to RESS are as follows:
• administer a set of operational processes for competitions established by the Minister and as provided for in the terms and conditions of the relevant RESS competition;
• administer an application, qualification and competitive bidding process for competitions established by the Minister and as provided for in the terms and conditions of the relevant RESS competition;
• conduct analysis to support the Minister as necessary for the establishment of a competition as provided for in the terms of reference of the relevant RESScompetition;
• submission of results of a RESS competition to the Minister and the Regulatory Authority; and report to the Minister on the compliance with TSO’s obligations detailed above in these Terms and Conditions.