Swedish energy giant Vattenfall is halting the UK wind farm project due to rising costs
Swedish state energy giant Vattenfall has abandoned plans to build a multibillion-pound wind farm off the coast of Norfolk over rising costs – dashing hopes it could power around 1.5 million homes.
It blamed a huge cost increase since it won a contract for the Norfolk Boreas project last year after bidding a record low of £37.35 per megawatt-hour, based on 2012 prices and linked to inflation.
Chief executive Anna Borg said: ‘The offshore wind energy market is challenging.
Higher inflation and capital costs are impacting the entire industry, but the geopolitical situation has left offshore wind power and its supply chain particularly vulnerable. We see cost increases of up to 40 percent.’
Bad wind: Vattenfall blamed a huge increase in costs for halting its Norfolk Boreas wind farm project, which was hoped to power around 1.5 million homes
The decision cost it £415 million. Vattenfall has two other projects – Norfolk Vanguard East and West – under scrutiny.
Dan McGrail, from RenewableUK, said: ‘The government needs to respond more forcefully to enable industrial growth.’
A government spokesman said: ‘We understand there is pressure on the supply chain globally, not just in the UK, and we are listening to companies’ concerns.’
The UK is a world leader in offshore wind farms, home to the four largest in Europe, with the capacity to power at least 10 million homes a year