Failure to secure a deal with the UK over electricity generated by a windfarm in Manx waters could delay the government’s ambition to meet renewable energy targets.

The Manx government signed a lease in 2015 with Danish renewable energy firm Orsted, then known as DONG, to explore the potential for a 700 megawatt win turbine array.

It was estimated at the time that the scheme would boost the island’s public funds by at least £5 million a year and create more than 50 new local jobs

But for Orsted’s plans to be financially viable, it will require a so-called ’contract for difference’ agreement, effectively providing a 15-year agreed price for power generated.

Currently only projects in UK territorial waters can compete for such a tariff deal, and for a project in Manx territorial waters to be able to do so there would have to be a change to UK legislation.

Environment Minister Geoffrey Boot said the Manx government has so far failed to secure a commitment to such a change with the UK, ’despite our best efforts’.

A spokesman for Mr Boot’s department said: ’An agreement for lease has been agreed with Orsted to explore feasibility for a 700MW offshore wind farm.

auctions

’However, any current development would require a change in UK law to allow Isle of Man projects to compete in future auctions for a contract for difference.

’Following a commitment to change it would take up to five years to construct a wind farm on this scale.

’This electricity would be supplied to the UK and a portion could be sent back to the Isle of Man. In the meantime, we will be looking at other options on renewable energy supplies.’

But Peter Christian of Isle of Man Friends of the Earth said there is no imminent prospect of a change to UK legislation.

He said: ’Bids to secure funding from this UK pot of money have to be submitted in auctions which run only every two years. There is one currently in May 2019 where we are not included and the next auction is not until 2021.

’While I very much hope the UK will have granted our request for inclusion by then, there is no certainty, and it is not clear what initiatives our government is pursuing in this regard.’

He added: ’An offshore windfarm is a clear no brainier, but people should not imagine the project is on a clear path to implementation.

’The project must not be used as a justification for the Isle of Man’s politicians to sit back and tell the public this is all that needs to be done.’

Mr Christian said that in any event, the Orsted scheme will not provide all our renewable energy.

He pointed out it will feed into the UK grid and the main benefit to us would then come from a seabed rental agreement with Orsted.

’The green energy produced can indeed be set against our carbon emissions, but it will not provide any of the renewable energy we must be developing in advance of the de-commissioning of Pulrose gas power station,’ said Mr Christian.

’Accounting this carbon offsetting is also not an excuse for us not to take radical action to reduce our own carbon emissions.’

Chief Minister Howard Quayle this month acknowledged a climate change emergency and committed the government to meet a target of net zero carbon emissions by 2050.

During a debate in Tynwald last week on urgent climate change mitigation, there was a call to bring forward that target to 2035.

But a vote on this has been put off to next month after the two branches were divided on an amendment by Mr Boot, who asked for a combined vote at the next sitting.

An Orsted spokesman told the Examiner six months ago: ’We are continuing with initial survey work on the project and construction will take place post 2020, subject to gaining the necessary consents.’