Has offshore wind been discounted?

The installation of offshore wind turbines requires extensive planning. The cost of power produced from offshore wind is also typically higher than onshore wind because of the environmental challenges at sea. It would not be economically viable to build a small-scale offshore windfarm which was suitable to meet our Island demand.

The timescales for the delivery of offshore wind relative to onshore wind are also significantly different. The construction of an onshore windfarm can be completed in less than 12 months whereas construction for offshore windfarms may take between two and five years.

Manx Utilities has a statutory duty under the Electricity Act, 1996, to provide the most economic source of electricity. Currently onshore wind represents the lowest possible generation technology available for the Island today and this is the reason onshore wind is being pursued.

The costs of different technologies can be reviewed in a 2023 Generation Cost report by the UK’s Department for Energy Security and Net Zero (DEZNZ) - The report uses Levelised Cost of Electricity values and these do not necessarily relate to true generation costs; the prices should only be used to compare the relative costs of technologies rather than being taken as absolute values.

Manx Utilities is currently exploring the option of connecting to an offshore windfarm which may provide a stability benefit to the Island due to its direct connection to the UK. However, it is not currently known whether this connection option is technically feasible.

To date Manx Utilities has received no commercial offer from any offshore windfarm developer.