The company has confirmed it will commit investment to bring power generated by Mooir Vannin to the Island should the Isle of Man Government and Manx Utilities choose to pursue it – based on current project parameters of 87 turbines.
Under the first option, Mooir Vannin would connect directly to the Isle of Man with a new Island Link to create a strategic long-term link between renewable energy generated in Manx territorial waters and the Island’s electricity system.
An alternative option would instead use investment that would have been used to construct a direct connection to fund a long-term power purchase agreement (PPA). Under a PPA approach, the existing interconnector between the Isle of Man would be used to deliver reduced cost electricity from Mooir Vannin for all Manx household and businesses.
Based on the current proposal of 87 turbines, initial analysis shows a PPA approach could support reductions in electricity bills of around 10% to 15% for residents and businesses across the Island.
A PPA deal would be supported through Renewable Energy Guarantees of Origin (REGOs), which would allow the Isle of Man to verify that green power generated from Mooir Vannin is being supplied to the island – ensuring that Manx homes and businesses are backed by cheaper, homegrown renewable energy.
While Ørsted, as the generator of electricity, does not determine the retail prices paid by consumers, the initial analysis demonstrates the potential for Mooir Vannin to lower the underlying cost of electricity supplied to the Island. Any future decisions on how savings are passed through to homes and businesses would ultimately rest with Manx Utilities and the Isle of Man Government.
Beyond potential savings, access to large-scale renewable energy could provide a range of wider benefits for the Isle of Man - including increased energy security by reducing exposure to volatility in international gas markets, supporting the Isle of Man Government’s net-zero ambitions and providing businesses with access to renewable electricity as environmental reporting and sustainability requirements continue to grow.
The Isle of Man’s most recent Business Environment and Conditions report identified energy costs as one of the key concerns facing local businesses. Against a backdrop of increasing global demand for clean energy and ongoing uncertainty in international energy markets, access to renewable energy is expected to become an increasingly important factor in supporting business competitiveness and attracting future investment.
Jamie Baldwin, Mooir Vannin project director at Ørsted, said: “For the first time, the Isle of Man has an opportunity to secure access to a large-scale source of renewable energy generated in its own territorial waters with the potential to support lower electricity costs - but this is about much more than electricity bills.
“It is about supporting the isle of Man’s long-term energy security, helping reduce reliance on imported fossil fuels, and ensuring local businesses can benefit from access to renewable energy as the global economy continues to transition.
“While we cannot determine the prices ultimately paid by consumers, our analysis shows our current proposals for Mooir Vannin could help reduce the cost of supplying electricity to island and provide long-term energy security.
“The final decision on the preferred approach will remain entirely with the Isle of Man, but we want to make it absolutely clear that we are committed to delivering a viable source of homegrown renewable energy to the island.”
As well as providing a secure source of clean energy, Mooir Vannin also has the potential to deliver significant long-term economic benefits for the Isle of Man.
Based on the current proposed size, current analysis indicates Mooir Vannin would generate at least £2 billion in combined taxation and rent — equivalent to approximately £55–60 million per year. To put that into context, annual revenue of this scale is equivalent to the Island’s forecast net expenditure on all primary schools and University College Isle of Man combined*.
The project would also establish a Community Investment Fund worth £1.5 million per year for the first 15 years of operation, supporting local community initiatives and projects.
In addition, the development of a major renewable energy project could help position the Isle of Man as part of the growing clean energy economy, supporting skills development and future investment opportunities.
The application for Mooir Vannin is currently undergoing an independent Examination process and says discussions with the Isle of Man Government, Manx Utilities and stakeholders will continue as the project develops.