The Irish government has confirmed that Corio Generation, a renewable energy developer, will not be able to retrieve its €35.4 million performance security guarantee after deciding not to proceed with the proposed Sceirde Rocks Windfarm development. The project was one of several selected in the country’s first offshore wind auction in 2023 and was expected to generate enough electricity to power over 350,000 homes. However, Corio cited “significant structural and technical challenges” specific to the project site and announced that it could no longer develop the wind farm.
The forfeiture of the performance bond is a key part of the terms and conditions of the auction, and it is expected to focus the attention of other offshore wind developers in Ireland. The development of offshore wind farms in Ireland has been slow, with delays in the planning system hampering progress and fuelling frustration. Three other projects that were successful in the first offshore auction also lodged performance security bonds, worth €20 per megawatt-hour.
The loss of the Sceirde Rocks project is a significant blow to the Irish government’s hopes of delivering at least 5GW of offshore wind by 2030. Industry! sources have stated that it is unlikely that Ireland will hit its 2030 targets, and that issues hampering development need to be resolved quickly. The industry lobby group, Wind Energy Ireland, has commented that the government’s plans are “at serious risk” and that “we cannot afford to lose projects”. The group has called for the government to work closely with industry to deliver the Phase One projects and to build confidence in Ireland among investors and the international supply chain.
Despite the challenges, Wind Energy Ireland has noted that Ireland still has “some of the best offshore wind resources in the world”. In an effort to accelerate the development of offshore wind, Taoiseach Micheál Martin announced a new Climate Investment Clearing House in April. However, with only one operational offshore wind farm in Arklow, which was first developed over 20 years ago, it is clear that more needs to be done to meet Ireland’s renewable energy targets. The forfeited performance bond is a significant financial loss for Corio Generation, and it serves as! a reminder of the risks and challenges associated with developing offshore wind farms.