Government sets direction on non-price criteria for future renewable energy auctions

Industry

06 Jan 2026

The Government has published its initial decision on how non-price criteria (NPC) will be applied in future renewable energy auctions, following its consultation on the implementation of Article 26 of the EU Net Zero Industry Act (NZIA).

This marks an important first step in reshaping the design of Ireland’s Renewable Electricity Support Scheme (RESS) ahead of the NZIA requirement that NPC apply to renewable auctions from 30 December 2025. While many of the detailed mechanics remain to be worked through, the decision gives greater clarity on the overall structure and confirms that further consultation will follow shortly.

Solar Ireland engaged closely with members during the consultation process and submitted a detailed response on behalf of the solar sector. This update sets out how the Government’s initial decision compares with that response and what the solar sector should be aware of as we move towards RESS 6.

What has been decided

1. Price versus non-price weighting

The Government has confirmed that future auctions will be structured so that 70–85% of the award is based on price, with 15–30% allocated to non-price criteria.

Two options are being carried forward for further refinement:

Option 4: 85% price, 5% resilience, 10% energy system integration
Option 5: 70% price, 5% resilience, 25% energy system integration

In this context, resilience refers specifically to the resilience of supply chains. The final weighting between these options has not yet been determined.

Solar Ireland had highlighted the importance of maintaining strong price signals in RESS auctions, particularly for capital-intensive technologies such as solar PV. The decision to retain a clear price-led structure, while layering in NPC, is therefore a welcome starting point.

2. Technology-specific pots

The Department of Climate, Energy and the Environment (DCEE) has decided to proceed with technology-specific pots, rather than a single technology-neutral auction.

At this stage, the Department favours two pots, one for solar PV and one for onshore wind, with further consultation planned on both the number of pots and how they interact.

This responds directly to concerns raised by Solar Ireland and others about cross-technology competition and the risk of distorted outcomes if very different technologies were forced to compete under a single scoring framework.

3. Price scoring methodology

The Government has confirmed that a revised price-scoring methodology will be developed in advance of the next RESS auction. No further detail has yet been provided, and this will be an important area for scrutiny in the upcoming consultation.

4. Pre-qualification non-price criteria

Pre-qualification NPC will be limited to:

Responsible Business Conduct (RBC)
Cybersecurity and Data Security (CDS)
Ability to Deliver

Self-declarations will be permitted for RBC and CDS until NIS 2 certification becomes available. Ability to Deliver will continue to be assessed in line with previous RESS auctions.

This reflects consultation feedback that pre-qualification requirements should remain proportionate and should not introduce unnecessary barriers to participation.

5. Post-award non-price criteria

Post-award NPC will be limited to:

Resilience, defined as the origin of listed components
Energy system integration (ESI)

Force majeure provisions will be introduced into the RESS Terms and Conditions for non-compliance with NPC, aligned with existing force majeure provisions.

Solar-specific points of note

For solar PV, the Government has set out a high-level approach to resilience scoring. Points will be awarded where “the final products are not assembled in that third country and at least four main specific components used do not originate in that third country. The PV inverters and the PV cells or equivalent do not originate and the PV modules are not assembled in that third country.”

DCEE has indicated that this will be subject to a 100% compliance threshold, with a more detailed scoring table to follow. That table will be capable of being updated to align with changes to the European Commission’s component list.

On energy system integration, DCEE is preparing an updated scoring table. At this stage:

Locational aspects will not be considered
Features equivalent to system services will not be considered
RESS will continue to require supported output to be 100% renewable

The Department has stated that it remains open to exploring RESS-compatible configurations that appropriately incentivise hybrid projects, but no detail has yet been provided.

Policy considerations and delivery

As Ireland implements Article 26 of the NZIA, how non-price criteria are applied will be critical to ensuring that compliance supports, rather than slows, the timely and affordable deployment of renewable energy needed to meet Ireland’s binding 2030 climate targets.

There is a risk that new cybersecurity, due diligence and supply-chain requirements could create disproportionate cost or administrative burdens if they are introduced without sufficient flexibility or alignment with existing frameworks.

Ireland already applies strong deliverability safeguards through RESS, including planning consent, grid connection contracts, and performance securities. Recognising these measures as part of NZIA compliance would help avoid duplication. There may also be scope to build on Ireland’s existing evaluation correction factor by expanding it to reflect sustainability or resilience considerations in a proportionate, technology-aware way.

A phased and flexible approach, grounded in established RESS safeguards and tailored to technology maturity, offers the most practical path forward. With clear guidance and careful design, Ireland can meet its NZIA obligations while maintaining delivery momentum and supporting the wider objectives of the EU’s Green Deal Industrial Plan.

Commenting on the wider implications of Article 26 of the NZIA, Garrett Monaghan, who supported Solar Ireland’s policy team during the consultation, has noted that the regulation represents a significant shift in how renewable energy auctions are designed across Europe:

“Article 26 of the Net Zero Industry Act is not simply about adding new criteria to auctions. RESS already requires planning consent, grid connection contracts and performance securities from bidders, each of which are key deliverability safeguards and consistent with core NZIA objectives. Going forward, NZIA requires governments to integrate cost, security of supply and system integration into support schemes. The basis on which those criteria are designed and implemented will determine the extent to which they support, or slow, renewable energy project development.”

What happens next

The Government has confirmed that a RESS 6 consultation will follow shortly. This will consider:

Eligible technologies and the number of technology pots
The rules governing interaction between those pots
Potential adjustments to the Underwritten Auction Element Cap (UAEC)
Possible exemptions for projects under 10 MW

Solar Ireland will engage closely with members as we prepare our response to this consultation, with a particular focus on ensuring that NPC are applied in a way that supports delivery, maintains investor confidence, and reflects the realities of solar project development.

If you would like to be involved in this work or to join the relevant policy discussions, please contact policygroups@solarireland.ie.