Drumnahough successful in Ireland’s fourth onshore RESS auction

– Donegal project is a 50/50 co-development from SSE Renewables and FuturEnergy Ireland –

– Construction would be expected to support around 60 jobs at peak delivery –

A bid by Drumnahough Wind Farm DAC for a contract to provide new onshore wind from a planned wind farm in Co. Donegal has been successful in Ireland’s latest competitive auction for onshore wind and solar energy.

The 12-turbine Drumnahough onshore wind project is a 50/50 co-development from SSE Renewables and FuturEnergy Ireland. It has secured a Contract for Difference (CfD) for 60MW of onshore wind power in Ireland’s Renewable Electricity Support Scheme (RESS-4) auction, the Provisional Results for which have been published by system operator EirGrid.

Drumnahough is one of four onshore wind projects and 23 solar projects to have secured CfDs for a maximum of 16.5 years of new renewable energy generation under the Irish Government’s RESS-4 auction. The contract win means Drumnahough can receive guaranteed revenue for the low-carbon electricity it expects to generate for the duration of the RESS-4 contract.

A total of 2,071 GWh was provisionally successful in Ireland’s latest RESS auction, equating to 1,334 MW of new onshore renewable electricity, made up of 374 MW of onshore wind and 960MW of onshore solar. The average weighted bid price for the auction is €96.85 per MWh, of which the weighted average for wind was €90.47/MWh, and for solar was €104.76/MWh.

Success for Drumnahough in the latest auction round confirms a route to market for the renewable energy that would be generated by the wind farm which, if approved for final delivery, would contribute to Ireland’s 2030 climate action targets. Project delivery will be subject to SSE Renewables and FuturEnergy Ireland reaching a final investment decision (FID).

Heather Donald, Director of Onshore Wind, Solar, Battery (GB & Ireland), said:

"We’re delighted our Drumnahough project has been successful in this latest auction round for new onshore wind energy for Ireland. This means the project has secured a route to market and, if it is approved for delivery, would receive a guaranteed income for the green energy it produces during the lifetime of the contract.

"Securing a route to market is an extremely important milestone in the progression of the project and will support the action we're taking at SSE to help deliver the project with our co-development partners, FuturEnergy Ireland. In progressing Drumnahough Wind Farm, we are taking further steps towards delivering this vital renewable energy infrastructure project. Drumnahough can help meet Ireland's climate action targets as well as deliver an important boost to Donegal's economy, local supply chain and communities during construction and throughout operation."

Paul Blount, Portfolio Director at FuturEnergy Ireland, said:

“This is a significant milestone for the project and will allow us to work, together with our co-development partners SSE, towards commercialisation and delivery. The project has the potential to make an important contribution to Ireland’s climate action targets, while also supporting the local economy in Donegal.”

The Drumnahough Wind Farm project is in the rural uplands of Donegal, 13km from Letterkenny and located within the townlands of Treankeel, Meenadaura, Carrickalangan and Cark. It was granted full planning consent by An Bord Pleanála in September 2022.

The Drumnahough Wind Farm project represents an expected capital investment of around €120 million by co-developers SSE Renewables and FuturEnergy Ireland. This spend would help support the regional supply chain through the use of local contractors and suppliers where possible. During construction, Drumnahough would be expected to support around 60 jobs at peak delivery.

When operational, the wind farm would be capable of generating enough green energy to power around 40,000^ homes and offset almost 40 million kilograms^ of carbon emissions annually.

Over the lifetime of the wind farm, it would also contribute millions of euro to the local exchequer through commercial rates payments to Donegal County Council, which would support the delivery of local services and infrastructure.

The wind farm would also support a multi-million-euro Community Benefit Fund for the duration of the RESS-4 contract. The Fund, which would be designed in consultation with the local community, would help promote a range of energy sustainability, climate action and other community initiatives in the area around the Co Donegal wind farm.

* 40,000 homes powered based on projected installed capacity, typical projected wind load factor of 32%, and typical annual consumption (4,200kWh). Quoted 40m kilograms of carbon emissions abated based on projected annual MWh output and latest average CO2 Emissions (0.236g/kWh) in the All-Island Single Electricity Market, and published by the CRU in its Fuel Mix Disclosure and CO2 Emissions for 2020, October 2021.