PLANS to build the world's largest commercial wave farm off the Westcountry coast will go ahead as planned despite a key developer pulling out.

A consortium of energy company E.ON and Bristol-based partner Ocean Prospect, who were to trial up to seven floating snake-like energy devices, yesterday said they would focus on testing wave technology at a rival site in Orkney.

With the Scottish scheme likely to be up and running a year before Cornwall's Wave Hub, E.ON explained its decision was predicated on getting "a machine into the water as quickly as possible".

The South West Regional Development Agency is leading the £28 million project to build a giant electrical grid-connected "socket" on the seabed about 10 miles offshore of Hayle, in which developers can "plug" their wave energy devices.

It was quick to point out it is already in talks with three developers interested in the vacant fourth berth.

Other hiccups for Wave Hub have included a year-long delay after building contractors submitted "disappointing" tenders and Australian company Oceanlinx withdrawing from the project after securing a grant from the Australian government.

Nick Harrington, head of marine energy at the South West Regional Development Agency, said: "It's entirely understandable E.ON wants to test a single next generation device at the European Marine Energy Centre rather than an array of devices, which is what Wave Hub is designed for.

"Wave Hub is on course to be built and commissioned next year. We are currently in detailed negotiations with three wave device developers and look forward to the first device being deployed in 2011."

In February, E.ON revealed it would be installing and testing a next generation Pelamis device – technology that has been flirted with in Portugal but not the UK – in Orkney. It intends it to be operational by next year.

Meanwhile the Wave Hub, which will generate more energy than the European Marine Energy Centre in Scotland, is expected to start next spring and be completed by August 2010. The first wave energy devices could to be deployed in 2011.

A spokesman for E.ON would not say whether the troubling economic climate was a reason withdrawing from the Wave Hub, adding it is "committed to renewable energy in the UK".

The firm owns one wind farm in Cornwall – 11 turbines St Breock Downs, near Wadebridge, which have been running since 1994 – and hinted it might become involved in Wave Hub at a later date.

Dave Rogers, regional director of renewables for E.ON, said: "Our aim is to concentrate on testing our Pelamis device, which means that it was unlikely we'd be in a position to connect to Wave Hub in the short term.

"We still believe Wave Hub is an excellent project – and we may well return to it in the future – but our initial goal is to get a machine into the water as quickly as possible, which we can do in Orkney."

Governments around the world see renewable energy as central to a swift economic recovery. But many in the sector are struggling against factors including antipathy towards wind farms in the British countryside and the banking sector's reluctance to back high-risk investments in emerging technology.

Energy giant Shell said earlier this year it was pulling out of wind, solar and hydro power because it felt it was uneconomic. Doubts also surround the London Array in the Thames Estuary, potentially the world's largest offshore wind farm, as it has struggled to secure finance.

But the South West Regional Development Agency remains bullish about Wave Hub, which could create 1,800 jobs and inject £560 million into the UK economy over 25 years.

Three other developers – Bodmin-based Orecon, Ocean Power Technologies and Fred Olsen – remain on board.

The Government-funded agency added that by paying for the infrastructure, Wave Hub was designed to be attractive to the private sector.

Mr Harrington said: "Marine energy is an emerging sector but one with huge potential, and the whole point of Wave Hub is to de-risk as far as possible investment by the private sector in developing wave technology.

"Clearly we're in a tough economic climate but that won't last forever. Developers take the long view and Wave Hub has a lifespan of 20 years because this is about developing technology with big, worldwide potential, not short term investment horizons.

"We have three developers working with us on Wave Hub and a lot of interest in the remaining berth, so notwithstanding the financial climate we're very optimistic."