Ireland has awarded development rights for a 900-megawatt (MW) offshore wind farm to a joint venture between Denmark’s Orsted and Irish utility ESB, the companies confirmed Wednesday. The Tonn Nua project has secured a 20-year contract-for-difference (CfD) at a strike price of 98.72 euros ($114.32) per megawatt hour, providing developers with a guaranteed electricity price. Any deviations from wholesale market rates will be adjusted to consumers, ensuring revenue stability.

The Irish energy ministry described the auction results as “highly competitive compared to recent auctions internationally.” The decision comes amid financial headwinds for offshore wind in Europe, including rising costs, higher interest rates, and supply chain challenges. Developers across Denmark, Germany, France, the Netherlands, and Lithuania have cited insufficient subsidies and revenue guarantees as barriers, highlighting the competitiveness of the Irish CfD award.

The Tonn Nua site remains in early development stages. The joint venture will need to secure multiple permits and satisfy its internal value creation benchmarks. Orsted anticipates a final investment decision around 2031, with the first electricity generation projected in the mid-2030s.

Ireland currently has just 25 MW of installed offshore wind capacity. The Tonn Nua project aligns with national objectives to diversify the energy mix, expand renewable electricity generation, and strengthen energy security. The development also signals Ireland’s intent to compete globally in renewable energy, offering opportunities for supply chain partners, technology providers, and investors in the offshore wind sector.

Once operational, the Tonn Nua wind farm is expected to contribute substantially to Ireland’s clean energy ambitions, supporting the country’s transition toward decarbonised electricity generation and meeting long-term climate goals.

For further information on the Tonn Nua offshore wind project, read more here.