REI Mar-Apr 2012 - Renewable Energy Installer

Isle of Man set for multi-million
pound renewable windfall
The Isle of Man is looking to cash in on an ambitious renewable energy
programme following a remarkable decision to surrender its share of the UK’s oil
and gas revenues.
T
he Manx government wants to
harness the green potential of
the island’s unique position to
attract a new era of clean energy
generation and export 10 times as much
low-carbon electricity to the UK as the entire
island consumes in a year.
A decision 20 years ago to surrender its
share of UK’s fossil fuel revenues in return for
its territorial waters looks like a multi-million
pound wager that is destined to pay off.
A gamble that may have appeared
madness at the height of the scramble for
oil and gas now looks a remarkable crystalball
policy call as the independent crown
dependency prepares to lease off small areas
of its seabed for massive returns.
The agreement in July 1991 ended a
25-year deal that saw the Manx Exchequer
receive a share of the royalties and rentals
from oil and gas exploration from the whole
of the UK continental shelf. The Isle of Man
had agreed to shrink its territorial waters from
12 to three nautical miles and give up any
interest it had in oil and gas exploration and
production in the Morecambe Bay area.
Boost in value
With the reversal of the 1966 accord, the island
now controls around 4,000 square kilometres
of territorial waters, which the drive to lowcarbon,
sustainable power generation has
boosted in value to an estimated £8 million
per square kilometre over 25 years .
An environmental report to be completed
in April may suggest the Isle of Man currently
The island is well set up
for the trial and research of
low-carbon technology
has the capacity to utilise several hundred
square kilometres of seabed, which still has
the potential to provide a huge return on
investment.
A 80MW gas turbine power plant
alongside a 10MW waste-to-energy facility
already enables the island to be a net exporter
of electricity to the mainland.
But with shallow waters, strong currents
and no shortage of wind, the island’s
renewable capacity appears perfect for the
installation of tidal, wave and offshore wind
installations.
And with zero corporation tax and a
swift planning decision-making process, the
island will may soon be looking to lease areas
of suitable seabed to energy companies to
generate and sell on to the mainland.
The infrastructure is already in place to
transmit electricity to the UK and a sub-sea
interconnector to the coast of Blackpool hooks
directly into the National Grid.
A Strategic Environmental Assessment
report is expected to be completed this spring,
which will then signal the move to attract
offshore wind generators as well as marine
energy pioneers.
The Isle of Man has been a test-bed for
many technical innovations and roll-outs. The
3G mobile network was fi rst introduced on the
island before it was rolled out across the UK.
TT goes green
And the world-famous TT motorbike festival is
already going green following the introduction
of the TT-zero event for electric-powered
www.renewableenergyinstaller.co.uk | 15