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.
“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 won a government contract to build the Norfolk Boreas project last year after bidding a record low price of £37.35 per megawatt hour (MWh) for the electricity generated.
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.
Dan McGrail, the chief executive of RenewableUK, said ministers would have to take into account global inflationary pressures “which have significantly changed the economic landscape”.
The original article contains 598 words, the summary contains 184 words. Saved 69%. I’m a bot and I’m open source!
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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.
“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 won a government contract to build the Norfolk Boreas project last year after bidding a record low price of £37.35 per megawatt hour (MWh) for the electricity generated.
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.
Dan McGrail, the chief executive of RenewableUK, said ministers would have to take into account global inflationary pressures “which have significantly changed the economic landscape”.
The original article contains 598 words, the summary contains 184 words. Saved 69%. I’m a bot and I’m open source!