Wind Energy Ireland has expressed concern at Shell’s withdrawal from the Irish offshore renewables market.

A Sunday Business Post exclusive today quotes a senior industry source stating that Shell is leaving to focus its efforts on “countries with more accommodating legislative frameworks”.

Shell had agreed deals with Cork-based company Simply Blue to acquire a 51 per cent share in the Western Star Floating wind project off the coast of Clare and to jointly develop the 1.3GW Emerald floating wind project off the south coast.

Norwegian energy major Equinor, which had been working the ESB to develop a 1.4GW floating wind farm off the Clare and Kerry coast, also left the Irish market last year.

This second significant withdrawal by an energy major has prompted Wind Energy Ireland to call on the government to put in place a “fit-for-purpose policy framework” for developing offshore wind.

WEI chief executive Noel Cunniffe

“While it is a concern to see Shell pulling out of the Irish offshore wind market, it is important to remember we still have some of the best offshore wind energy resources in the world and a growing pipeline of projects,” WEI chief executive Noel Cunniffe told the newspaper.

He said he understood that “Simply Blue Group remain fully committed to their two floating offshore wind projects and are doing everything to make them happen”.

“We need to see a policy put in place for the offshore wind process and, critically, the Maritime Area Regulatory Authority (MARA) must be established as soon as possible to give developers clarity on how the next phase of offshore wind projects can deliver for 2030,” Cunniffe said.

The Sunday Business Post says it understands that the draft terms and conditions for the first Offshore Renewable Electricity Support Scheme (O-RESS) auction caused “significant disquiet among renewable energy developers when they were released late last year”.

It reports that under the draft terms for the O-RESS auction, a successful energy company would be required to put up a “performance security”, or a bond, of €24 for every megawatt hour of energy the proposed project will deliver.

The newspaper says a major issue in the draft guidelines was believed to relate to “a clause which stated that the Minister for Energy may take the bond if the project has not been granted planning consent by 2024”.

Read more in The Sunday Business Post HERE