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Plans to construct a giant wind farm off Norfolk, UK have been halted due to supply-chain costs, inflation and gas prices... Essentially they can't make any money out of it and it has already cost £415m...
Giant windfarm off Norfolk coast halted due to spiralling costs
Swedish energy giant Vattenfall says costs have climbed 40% due to rise in global gas prices
www.theguardian.com
The government’s green energy ambitions have been dealt a blow after plans for a giant offshore windfarm off the Norfolk coast ground to a halt due to spiralling supply chain costs and rising interest rates.
The Swedish energy giant Vattenfall said it would stop work on the multibillion-pound Norfolk Boreas windfarm, designed to power the equivalent of 1.5m British homes, because it was no longer profitable.
The state-owned company said costs had climbed by 40% due to a rise in global gas prices which have fed through to the cost of manufacturing, putting “significant pressure on all new offshore wind projects”.
“It simply doesn’t make sense to continue this project,” said Anna Borg, Vattenfall’s chief executive. “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.”
“The market framework is simply not reflecting the market situation,” Borg said. “Something needs to happen. It’s important to understand that our suppliers are being squeezed. They have problems in their supply chain so it’s not so easy to mitigate these situations.”
Borg said Vattenfall has called on the UK government to adapt the financial framework which controls the price and was in “constructive discussions” with officials.
Industry experts have said that without an overhaul of the government’s financing approach to take into account the steep climb in costs, the UK risks missing its target to increase its offshore wind capacity fivefold to 50GW by 2030.