Irish developer ESB has made a provision for an exceptional finance cost of €135 million related to delays at the 450MW Neart na Gaoithe offshore wind farm off the coast of east Scotland. The Dublin-based utility, which is building the project in partnership with EDF Renewables, revealed the “expected credit loss” in its annual report for the 2024 financial year.
The provision follows a review of the project, which has seen a revised timeline that will push the completion of the wind farm to this summer, several years behind the original schedule. The review also took into account additional construction costs, inflationary impacts, and other elements affecting future operations.
“The expected credit loss was assessed as €134.6 million as at 31 December 2024, which has been recognised in the Group Income Statement as an exceptional finance cost,” ESB said in its report.
Despite the delays, ESB noted that construction on the project is now progressing well and is nearing completion, with the first export of power to the grid achieved in October 2024.
The company attributed the delays to “delivery issues on the foundation package and construction delays as a result of COVID-19 impacts.”
The €135 million provision adds to previous impairments on the project, including over €150 million booked in 2021.
In its financial results for the year, ESB reported a profit after tax of €706 million, while also noting a record €2.2 billion capital investment outlay. The company emphasized its continued focus on investment in critical energy infrastructure as it works towards decarbonizing and expanding the energy system.
