Renewable Energy Support Scheme (RESS 1) first auction terms and conditions published

The final terms and conditions for the first auction under the new Renewable Energy Support Scheme (RESS 1) in Ireland have been published (the RESS 1 Terms). The A&L Goodbody Energy, Infrastructure and Natural Resources team have, at a high level, drawn out some of the key features arising under the RESS 1 Terms and related documentation. These points focus on commercial developer led (as opposed to community led) energy projects. We understand the scheme remains subject to State aid approval and may be amended as a condition of such approval.

The RESS 1 Terms apply to the first RESS auction only.

Key features of RESS 1:

  • It will be an auction based process with support structured on a two way payment basis between EirGrid plc (as the administrator of the payment process) and those entities successful at auction (the Successful Applicants) by reference to a strike price
  • The strike price per project will be set by reference to a Successful Applicant's bid price (which will not be subject to indexation)
  • Bid prices for the auction cannot exceed €120MWh
  • Supported technologies eligible for participation in the auction are onshore and offshore wind, solar, hydro, biomass HECHP, waste to energy HECHP and biogas HECHP
  • Solar generation has been included as a preferred technology up to a threshold (300GWh)
  • If the market reference price is below €0 no support payments will be made for the hour(s) during which negative pricing applies
  • There will be an additional specified cost of €2MWh for each Successful Applicant, plus costs of posting bid bonds, performance bonds and administering a community benefit fund. The additional specified costs of €2MWh is a contribution to each Successful Applicant's community benefit fund. The establishment by a Successful Applicant of a community benefit fund is a requirement for participation in RESS 1 and constitutes part of the government's strategy to ensure local communities benefit from energy projects in their locality
  • A bid bond (by way of cash deposit) will need to be provided by an applicant (at the time they submit their application for inclusion in the RESS 1 auction process) in an amount equal to: €2,000 x MW of capacity offered in the auction
  • A performance bond (by way of an on demand instrument) will need to be provided by a Successful Applicant in an amount equal to: €25,000 x MW of capacity offered in the auction
  • Main indicative timelines are:
    • application for qualification – closes 30 April 2020 (this is an extension to the original date of 2 April, given the impact of COVID-19)
    • auction submissions for qualified applicants – closes 28 July 2020
    • final auction results – 10 September 2020
  • A Successful Applicant's project must achieve its commercial operation date by no later than 31 December 2023 or will lose RESS 1 support

For more information please contact Ross Moore, John Dallas, David McElroy, Aisling O'Donoghue, or any member of our Energy, Infrastructure & Natural Resources team.

Date published: 23 March 2020