RWE Scraps $7.3 Billion Wind Farm Off U.K. on Costs
RWE AG (RWE)’s renewable-energy unit has decided to drop a 4.5 billion-pound ($7.3 billion) offshore wind project in the U.K. because engineering challenges made it too expensive.
“At the current time, it is not viable for RWE to continue” the Atlantic Array farm because of deep waters and adverse seabed conditions, RWE Innogy said in a statement on its website. The 278-turbine project in the Bristol Channel can’t be justified under “current market conditions,” it said.
RWE’s decision adds to uncertainties facing the industry as a political dispute over clean-energy subsidies threatens to frighten away investment. Aid to wind farms has come under fire from opponents of the energy source, who say consumers are being forced to pay for a technology that’s both inefficient and a blot on the British landscape.
RWE will continue with less technically challenging offshore projects, including the 576-megawatt Gwynt-Y-Mor farm that is scheduled for completion next year, RWE said in the statement.
The average household power bill has risen 68 percent since 2008 prompting a proposal from the opposition Labour Party to freeze energy prices.
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