UK-based KP Renewables has entered into a joint development agreement with Wave Dragon Ltd which provides a framework for the two stage development, financing, construction and operation of up to 77 MW of wave energy projects in the country.
The first stage of the project involves the deployment of the 7 MW Wave Dragon unit off the coast of West Wales, near Milford Haven. An application for a $8.86 million ‘Objective 1' grant for the first stage of the project has been made to the Welsh European Funding Office.
If the first unit proves successful, the second stage would feature up to 11 Wave Dragon units at a deeper water, more energetic site, with a total capacity of 70 MW, subject to regulatory consents. The units are expected to be deployed during 2008 and 2009.
It is expected that the energy generated from the project will be sold by KPR under its Power Purchase Agreements.
The total cost of the first stage of the development is projected to be $21.3 million.