Vattenfall suspends offshore wind farm project in British waters. Rising costs would make it unviable

Swedish energy company Vattenfall announced today that it was suspending a planned offshore wind farm project off the coast of the United Kingdom. Although the company secured a guaranteed purchase price for the wind farm in an auction, company representatives said rising construction costs would make the project commercially unviable. They also warned that without better incentives, the UK's renewable energy targets could be at risk.

The planned 1.4 GW Norfolk Boreas offshore wind farm project was suspended today. The wind farm, which was due to come online towards the end of this decade, was expected to help the United Kingdom meet its target of increasing installed offshore wind capacity from around 14 GW today to 50 GW by 2030. Offshore wind farms are expected to help the country meet its climate goals and improve its energy security.

"Higher inflation and capital costs are affecting the entire energy sector, but the geopolitical situation has made offshore wind power and its supply chain particularly vulnerable," Vattenfall President and CEO Anna Borg said, according to Reuters.