A joint venture, formed by ESB and Ørsted, has won the rights to develop the Tonn Nua offshore wind site in Ireland.

The site had been designated as the only site for bidders in Ireland’s second offshore wind auction. The auction offered a partially indexed 20-year contract for difference with a strike price of €98.719 ($114.4) per MWh, and the right to apply for a seabed lease and grid connection for the winning bidder.

The contract for difference is to support the development of a 900MW fixed-bottom offshore wind farm at the site, located off the coast of County Waterford. The site spans 306 sq km.

The Tonn Nua site is in an early phase of development, and the final investment decision is expected around 2031, with first power scheduled for the mid-2030s.

Ireland’s transmission system operator EirGrid will build the transmission assets, offshore and onshore substations, and export cables. The Tonn Nua offshore wind farm must be operational by the longstop date of January 1, 2037, under the CfD terms and conditions.

“Offshore wind will play an important part in the future Irish energy system, ensuring green, affordable, and secure energy. We will continue to work with our joint venture partner ESB to carefully assess and progress this early-stage development opportunity,” said Alana Kühne, head of region Europe development at Ørsted.