Swedish energy giant Vattenfall’s decision to stop work on a multi-billion euro windfarm off the Norfolk coast has dealt a blow to Britain’s renewable energy targets.
As The Guardian reports, Vattenfall said it was no longer profitable to work on the Norfolk Boreas windfarm, designed to provide power to the equivalent of 1.5 million British homes.
Jess Ralston of Britain’s Energy and Climate Intelligence Unit think tank said the withdrawal was influenced by the British government’s decision to set the starting price for the next contract auction before a global rise in market prices.
International increases in gas prices have led to a 40 per cent increase in manufacturing costs, which has put “significant pressure on all new offshore wind projects, Vattenfall said.
“It simply doesn’t make sense to continue this project,” Vattenfall’s chief executive Anna Borg is quoted as saying.
“Higher inflation and capital costs are affecting the entire energy sector, but the geopolitical situation has made offshore wind and its supply chain particularly vulnerable.”
Vattenfall secured the contract to build the Norfolk Boreas project last year after bidding what is described as a “record low price” of £37.35 (43.46 euro) per megawatt hour for electricity generated.
Read The Guardian report here