The Isle of Man government has selected Dong Energy as its preferred partner in the development of a new offshore wind farm in the Irish Sea.

The government wants to develop the wind farm as part of wider plans for an offshore energy hub that includes a tidal power plant. It announced that Manx Tidal Energy Ltd and Tocardo Tidal Energy Ltd would be its preferred partners for the tidal energy project.

The proposed site of the wind farm is off the east coast of the Isle of Man within the 12 mile limit of the island’s territorial sea. Dong could construct up to 700 MW by 2023, according to the lease agreement.

There are three possible sites to be surveyed for the tidal power development, the government said.

“The opportunities for the Isle of Man in renewable energy are significant," said Minister for Economic Development Laurence Skelly. "We estimate that leasing parts of the seabed within our waters to offshore wind and tidal developers will generate at least £5 million of revenue per year directly to government, helping to fund public services as well as contributing to a lower carbon footprint."