Centrica plc and DONG Energy have jointly decided to cease development of wind farms in the Irish Sea Zone through their 50/50 joint venture vehicle Celtic Array Limited (“Celtic Array”).
The decision to stop development comes as a result of an assessment of the Zone, which has confirmed challenging ground conditions that make the project economically unviable with current technology.
The joint venture was formed in March 2012 when DONG Energy bought a 50% share in Centrica's rights to develop wind farms in the Round 3 Irish Sea Zone.
The Crown Estate (“TCE”) have agreed to Celtic Array's request to terminate the zone development agreement for the Irish Sea Zone, allowing the joint venture to stop development activities.
A spokesperson for the project said: “We're disappointed not to be progressing with our work to develop wind farms in the Irish Sea Zone, however our assessments have shown that ground conditions are such that it's not viable for us to proceed with the technology that's available at this stage. We're extremely grateful for the support that has been shown to us and would like to thank everyone who has taken part in the development of our proposals for the Rhiannon wind farm and other potential projects.”
The Irish Sea Zone
In January 2010, Centrica Renewable Energy Limited announced an exclusive Zone Development Agreement with The Crown Estate, allowing Centrica to prepare proposals for developing offshore wind farms in an area of the Irish Sea.
The Irish Sea Zone covers an area of 2,200km2. The boundaries of the zone are approximately 15km from Anglesey, 20km from the Isle of Man, and more than 40km to the Cumbrian coast.