Vattenfall has decided to halt development of its huge Norfolk Boreas offshore wind farm, citing “challenging market conditions”.
It said, “The offshore wind industry has seen cost increases up to 40% which in combination with increased cost of capital puts significant pressure on all new offshore wind projects. So far, financial frameworks have not adapted to reflect the current market conditions”.
Vattenfall will investigate the best way forward for the whole Norfolk zone, which in addition to Boreas also includes the projects Vanguard East and Vanguard West.
The Boreas sites offshore of Norfolk have a combined capacity of 4.2 GW. They are 47km from shore at the closest point and in water depth of up to 45m. No decision had been made on the turbine supplier.
Vattenfall recognised an impairment charge and provision of £410 million (5.5 billion SEK) with regard to the project halt.