New Obton-Shannon Energy JV to spend €300m on 500MW of PV in Ireland

Facebook
Twitter
LinkedIn
Reddit
Email
Anders Marcus, Obton CEO. Source: Obton

Danish renewables investor and developer Obton Energy has formed a joint venture with Irish solar developer Shannon Energy to develop 500MW of solar in Ireland over five years.

In interviews on Wednesday morning with PV Tech, both companies confirmed that Ireland’s forthcoming inaugural renewable energy auction scheme spurred the €300 million plan.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

“Ireland is fertile ground thanks to the government’s new auction process,” Gerry Shannon, who runs Dublin-based company with his brother, explained. Ready-to-build projects totalling 150MW have already been secured and developed, he said, and the partners intend “to reach further back into the development process and look to secure greenfield sites” over the next five years, too.

A number of European and Irish banks are “ready to give” debt finance to the operation, according to Shannon.

Details of Ireland’s long-awaited Renewable Electricity Support Scheme (RESS) were unveiled in December. The first, 300GWh, auction is scheduled for the summer.

The government has devised the scheme, which will be administered by Ireland’s transmission system operator EirGrid, in order to increase renewables' share of Ireland's electricity to 70% by 2030 from about 40% today. 

“Ireland has launched some ambitious plans for the future and we would like to be part of that,” Anders Marcus, chief executive officer of Obton, told PV Tech.

He said that the JV hoped to win “about 100MW” of capacity in the maiden auction.

The JV has already secured one-third of the 2,000 acres it estimates it needs to roll out 500MW, according to Marcus. His firm will lead on equity financing while Shannon Energy will front local development efforts.

Future projects likely to involve energy storage and corporate offtakers

Obton's Marcus noted that Ireland’s grid will be tested by the influx of new capacity ushered in by the auction program.

“It’s one thing to launch ambitious plans; the other is to prepare the grid. We are confident that Ireland will be able to fulfil that, but that’s something that needs to be proven,” he said.

Both Shannon and Marcus confirmed that while energy storage was not included in short-term plans, it is likely to be included in the long-term.

Corporate offtakers will also be considered in due course. “Corporate PPAs tend to be shorter term, five or seven years, and we’re going to hold these projects for 30 years, meaning we would prefer to have a longer-agreement,” said Shannon. “In the future, if we can find a corporate PPA or a private PPA that would be suitable for us, then of course we will go ahead and construct, provided that the bank regards to paperwork of such a PPA to be a viable risk.”

Marcus said: “We are putting all our attention in the coming auction. When we see the results, then we will have the possibility to do PPA outside of the system. But the focus right now is the auction.”

Read Next

November 13, 2024
Masdar and the Albania Power Corporation (KESH) have announced plans to build a “gigawatt-scale” renewable power portfolio in Albania.
September 11, 2024
In the fourth round the Irish Renewable Energy Support Scheme (RESS 4), approximately 1,334 MW of onshore renewable electricity won support.
September 3, 2024
Both companies aim to build the 1,150MW solar PV portfolio in the Khavda region, which is located in the western Indian state of Gujarat.
July 8, 2024
Danish investment bank Obton has established a JV with renewables investment firm GSSG Solar to acquire a 117MW solar portfolio in Japan.
June 17, 2024
The UK and the Ireland I-SEM are also top markets for renewables and battery energy storage systems (BESS) co-location in Europe.
June 13, 2024
The European Bank for Reconstruction and Development (EBRD) has formed a joint venture with German energy company Goldbeck Solar Investment to develop up to 500MW of solar PV in Ukraine.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
November 19, 2024
Philadelphia, USA
Solar Media Events
November 20, 2024
Zhuhai, China
Solar Media Events
November 21, 2024
London, UK
Solar Media Events
November 26, 2024
Málaga, Spain
Solar Media Events
November 26, 2024
Warsaw, Poland