Swedish electricity group Vattenfall is halting development of one of the UK’s largest offshore wind projects because of soaring costs, dealing a blow to the UK’s renewable energy ambitions.
Vattenfall reassesses its Norfolk wind projects following difficult market conditions
“Vattenfall is halting development of the Norfolk Boreas offshore wind project in the UK,” the group said in an earnings release on Thursday.
“Wind power is essential for clean, safe and affordable electricity”, but “conditions are extremely difficult in the sector at the moment”, comments managing director Anna Borg in a statement received by AFP.
It lists “a supply chain under pressure, rising investment costs and tax frameworks that do not reflect current market realities”.
While the Group, one of Europe’s leading wind energy producers, “still believes in the fundamentals of the Norfolk projects”, in the east of England.
“Given market conditions we are halting development of the Norfolk Boreas project and re-evaluating the best course of action for the three projects” in this region, she concludes.
The Swedish group was already facing a difficult 2022, with profits close to zero, and a heavy loss in the last quarter due to major asset write-downs linked to the energy crisis in Europe.
