The company behind plans to build a 200 turbine windfarm on a sandbank 10km off the coast of Arklow, Co Wicklow, has contracted US giant GE Capital to build the first seven turbines.
The giant turbines have a turning arc the size of a football pitch, and provide 3.6 megawatts of power each. This is enough to supply clean electricity to over 2, 000 households, according to the project backers Airtricity.
Airitricity says the deal is worth under €50m, and construction will be completed during this summer when there is less chance of large storms.
Airtricity chief executive Eddie O'Connor says it will take two further phases of construction before the 200 turbines are built, providing up to 520 megawatts of power by 2008.
He says the total project value could be as high as €640m, but that the third and most significant phase can only take place if the Government agrees to support the construction of an interconnector between Ireland and Wales so the electricity can be sold into the UK market.
GE Capital Energy will fund and own the first seven turbines, but give Airtricity the option to purchase after two years of operation.
GE bought its wind energy division off Enron last year, when Enron collapsed in one of America's biggest ever corporate frauds.
