Irish energy firm plans £1.2bn North Sea wind farm

Airtricity, the Dublin-based renewable energy specialist, is preparing an audacious plan to build the world's biggest wind farm in the North Sea at a cost of about £1.2bn. The Irish group is putting together a consortium of energy and construction partners to raise finance to develop the wind farm, which would be located in British waters. It aims to present its plans to the Government later this year. Airtricity, which is backed by NTR, the largest multi-utility group in Ireland, has drawn up plans for a wind farm of about 5,000 turbines producing more than 10,000 megawatts of electricity. The scheme would make a significant contribution to the Government's target of generating 10 per cent of the UK's power from renewable sources by 2010. Analysts believe that, on current predictions, the target will be missed. At present just 4 per cent of Britain's power is generated from renewable sources. Experts believe the scheme could pay back the development costs within 10 years and possibly as early as six years.

Airtricity's partners are likely to include a national grid operator, such as National Grid Transco, ScottishPower or Scottish & Southern Energy. One of the most expensive parts of the project would be the cost of linking the farm to the grid. The consortium will also include a power generation company, such as Centrica, Npower or Powergen, which would probably sign an agreement to buy the green energy produced by the turbines. Airtricity is one of the most active players in the UK wind power sector. Last year it applied to build a £480m, 173-turbine wind farm on hills in South Lanarkshire in Scotland. The turbines would be spread over almost 50 square kilometres and create enough energy to power 441,000 homes. They would reduce carbon dioxide emissions by the same amount as taking 400,000 cars off the road. However, the plans have met fierce local opposition. Airtricity already has a wind farm in North Ayrshire and recently won consent for a 49-turbine development near Stirling.