Two solar power projects developers from different European nations have joined hands to explore the Irish market and develop up to 500 MW of solar power projects over the next five years. Shannon Energy of Ireland and Obton of Denmark will do so through a joint venture that will invest €300 million ($333 million) in the partnership.
The JV will purchase, build and operate this capacity on some 2 acres of land. According to local media reports, the two partners have identified sites in Cork, Galway, Longford, Tipperary and Westmeath counties for 150 MW capacity, and are in talks with farmers to acquire land for the remaining 350 MW.
While Obton will provide most of the funding to develop this capacity, Dublin based Shannon Energy will majorly be in charge of executing the projects armed with local know-how.
Both the companies will pursue these opportunities under the Renewable Energy Support Scheme (RESS) in Ireland through which the government will hold auctions to procure power from solar PV, onshore and offshore wind, and bioenergy technologies and in return will offer incentives (see Ireland Approves Renewable Energy Auction Scheme). The Irish Times says the government will charge denizens for this scheme through a public service obligation charge on their electricity bills in lieu of supplying them cheaper electricity.
In an undated information shared on Shannon Energy's website, it said the two companies will also seek suitable UK and European projects that satisfy the Obton model for return on equity deployed.
A fossil-fuel dependent economy today, Ireland has set up RESS in a bid to increase the share of renewable energy to 70% of the total mix by 2030, increasing from 30% back in June 2019 (see Ireland Aims For 12 GW RE Capacity By 2030).
In December 2019, Obton targeted DKK 12 billion for its new Impact solar fund to invest in German, Irish, French and Dutch solar parks (see Danish Solar Developer Launches New Fund).