The Department of Climate, Energy and the Environment (Department) is consulting on how Article 26 of the EU Net-Zero Industry Act (Regulation (EU) 2024/1735)  (NZIA) will apply to future Offshore Renewable Electricity Support Scheme (ORESS) auctions.

Unlike the sixth Renewable Electricity Support Scheme auction (RESS 6), where non-price criteria carry 15% of the score, the ORESS proposal makes every non-price criterion a pass/fail entry test. This test would apply to all auctioned capacity. The proposal reflects the purpose of the NZIA which aims to scale up European manufacturing of net-zero technologies and reduce reliance on a small number of third countries. To achieve this, developers must be encouraged to buy components based on more than price.

Article 26 has required Member States to build non-price criteria into renewable energy auctions since 30 December 2025. The detailed rules are set out in Commission Implementing Regulation (EU) 2025/1176. To date, ORESS auctions have been decided on price alone, including Tonn Nua (ORESS 2.1) which was awarded in December 2025. Under the consultation proposals, price would remain the deciding factor at bid stage, but  the route to bid stage would change significantly.

The first auction likely to be affected is ORESS 2.2 for the Lí Ban site off Co. Waterford (estimated at 1.1 GW to 1.5 GW). The Department has indicated that this auction will take place in 2027. The Department will accept responses to the 24 consultation questions until 5pm on Friday, 9 October 2026. Below we discuss the three key changes, the key details for bidders, and the next steps.

1. The Three Key Changes

A) All Capacity in Scope

Article 26 sets a minimum threshold for the share of auctioned capacity that must be subject to non-price criteria at 30% of auctioned capacity or 6 GW a year, whichever is lower. The Department proposes to go further and apply Article 26 to all capacity offered in every ORESS auction from 2026. It considers  that there is currently no policy evidence to support a narrower application. In practice, every Lí Ban bidder will need to satisfy the new criteria, once these are settled.

B) Every Non-Price Criterion at Pre-Qualification

Article 26 makes three pre-qualification criteria mandatory:

• Responsible Business Conduct;
• Cybersecurity; and
• Ability to Deliver.

Article 26 also requires auctions to assess Resilience and Sustainability, but Member States can choose whether to apply these at pre-qualification or as scored award criteria. RESS 6 chose award criteria. For ORESS, the Department proposes pre-qualification for all of them.

For Sustainability, the Department is seeking views on two environmental options, Biodiversity Impact and Circular Economy, and whether to adopt one or both. Energy system integration (which RESS 6 rewards) and innovation are not proposed, although the consultation asks whether they should be considered now or reserved for a future review. The practical effect is that meeting the non-price criteria will not help a bid win, but failing any of them will stop a project competing.

C) Declare Now, Prove Later

Recognising that bidders will not have finalised suppliers at pre-qualification, the Department proposes that most criteria are satisfied initially by a legally binding self-declaration, with documentary evidence provided later and compliance checked throughout the support period. Non-compliance may lead to penalties. The focus for bidders therefore shifts from optimising a score to making commitments that must be honoured, and evidenced, for years after the auction.

2. The Key Details for Bidders

A) Resilience

• The Declaration: At pre-qualification, bidders must declare that the following will not originate in a third country identified in the European Commission’s June 2025 Communication on supply dependencies:
  • any of the final products;
  • the drivetrain (whether direct drive or gearbox, including the generator); and
  • more than four of the main specific components.

• The Components: The Commission’s list for offshore wind includes nine components: nacelles, rotor hubs, bearings, drivetrains, permanent magnets, gearboxes, blades, towers and foundations/floaters. Bidders must state the country of origin of each component.
• Evidence: Bidders would evidence origin by customs clearance documentation. Where a component forms part of a larger product or is imported from a country other than its country of manufacture, supporting original equipment manufacturer documentation is required. When this evidence must be provided remains an open question in the consultation.
• Lifetime Obligation: Bidders must notify the Department each time a main specific component is replaced during the support period. Any replacement must remain consistent with the original declaration.

B) Cybersecurity

• Security by Design: Bidders must apply security by design and by default to the installation’s network and information systems and ensure their ICT suppliers do the same. Additional information is required where a bidder or ICT supplier is subject to the jurisdiction of a third country considered a cybersecurity threat.
• EEA Operational Control: Operational control of the installation must be maintained within the European Economic Area. Bidders with non-EEA control or operating structures should review this early.
• Evidence: Bidders would self-declare at pre-qualification and commit to obtaining NIS2 certification once an energy-sector certification is available. In the interim, the Minister may require another certificate, such as CyFun. A cybersecurity plan must also be maintained and updated regularly.

C) Responsible Business Conduct and Ability to Deliver

• Responsible Business Conduct: Bidders would provide a self-declaration at pre-qualification. Full documentation would be due after award and before commercial operation. This includes independently assured due diligence statements, for bidders within scope of the EU accounting and sustainability reporting regime.
• Ability to Deliver: The Department considers that the existing ORESS qualification documentation already satisfies this criterion, so no new requirements are proposed.

D) Sustainability

• Biodiversity Impact: Bidders would commit to operating a monitoring system from installation to decommissioning, covering the water column, seabed and the areas above them, including noise and pollution. Data must be shared annually with the scientific community and public authorities (unless commercially sensitive), and evidence of effective mitigation provided every three years.
• Circular Economy: Bidders would commit to choosing main specific components that take account of ease of repair, maintenance, upgrading, reuse, remanufacturing or refurbishment under the Ecodesign Regulation (EU) 2024/1781. They would also provide a supporting report before commercial operation.

E) Compliance and Confidentiality

• Penalties: The form and scale of penalties for non-compliance, and whether relief should be available for force majeure, are open questions in the consultation.
• Freedom of Information: Submissions are subject to the Freedom of Information Act 2014 and the Access to Information on the Environment Regulations. Respondents should clearly mark commercially sensitive material and explain why.

3. Next Steps

Submissions close at 5 p.m. on Friday, 9 October 2026 and should be sent by email to [email protected]. The Department will publish a consultation response. The final approach will feed into the terms and conditions for the Lí Ban auction. Several open questions, will shape bid economics and risk allocation for the life of a project. These include when origin evidence must be provided, what penalties will apply and how commercially sensitive data will be protected. Developers, investors and supply chain participants considering Lí Ban, or later sites under the South Coast Designated Maritime Area Plan, should engage with the consultation now. They should also begin mapping their supply chains, cybersecurity governance and control structures against the proposed criteria. Please contact any of our key contacts for advice on preparing a submission.

Contributed by Lorraine Kelly