Dong Energy has signed an agreement for lease with the Isle of Man government to carry out preliminary investigations for an up to 700MW offshore wind farm in Manx waters off the north east coast of the island.

The agreement gives Dong the right to investigate an area approximately six to 12 miles off the east coast of the island to determine its offshore wind suitability.

Dong said the investigation will take several years to complete, after which, if conditions are suitable, there will be an option to execute a lease with the Isle of Man government for the seabed over the lifetime of the wind farm.

Subject to the findings of the investigations, construction activities would likely take place post-2020.

The creation of an offshore energy hub is one of its core long-term strategies for economic growth of the island. Developments in renewable energy could open up an opportunity for the Isle of Man to position itself as a hub to coordinate offshore projects and enhance connections between countries in the Irish Sea region.

There may also be scope to secure future renewable electricity supplies for domestic use in the Isle of Man, as well as exporting power to the UK.