The ESB has pulled out of a major offshore wind farm project planned for the Kish bank in the Irish Sea, it has emerged.
The State-owned utility yesterday declined to put a value on the 33.3 per cent stake it has sold, but it is believed to be relatively modest. The ESB held the stake via its wind energy subsidiary, Hibernian Wind Power Limited.
It is understood Hibernian wanted to have the controlling stake in the project and when this was not available, it moved to sell its shares.
The British energy group PowerGen Renewables sold its one third stake in the project over a year ago. Both the ESB and PowerGen stakes were purchased by the remaining shareholder, Tralee-based company Saorgus Limited.
The Kish project, which was first announced six years ago, was meant to be one of the largest offshore wind farm projects ever undertaken in the Republic. However it has been beset by delays.
Despite this Dr Aidan Forde, a director of Saorgus Ltd told The Irish Times he remained confident the project would go ahead. He said Hibernian was selling because it was concentrating on onshore wind technology.
He said delays in getting a grid connection from the ESB was the chief reason for the hold-up. However ESB Networks yesterday said there were still uncompleted elements to the Saorgus application. "One of the most important areas is the submarine cable," explained a spokesman. It is believed contact between the two sides is ongoing.
The project will consist of a large number of tall wind turbines. Research by Saorgus has indicated that wind speeds are sufficient in the area to generate significant amounts of electricity.
The Kish bank is about six miles off the east coast. At full power, the project should be able to generate almost 50 megawatts of power, although there is potential for more.
Putting the turbines in place can only be done in summer. The turbines would be anchored in the bank and Saorgus would then install an underwater cable to carry the electricity back to shore.
Saorgus says it hopes to apply for a foreshore licence shortly from the Department of the Marine, Communications and Natural Resources, but the delays over a grid connection remain a problem.
If the project is advanced this summer, it has a guaranteed power purchase agreement with ESB. This means ESB will purchase the power at a guaranteed price for many years.
Saorgus Energy was formed in 1993 and was initially called Western Windpower Ltd. The directors are Mike Barry from Tralee and Dr Forde from Killarney. In more recent times John Bourke from Dublin has joined as a third director.
The company specialises in the development of large wind energy sites in Ireland.
