REM: Costs surge in offshore wind, rattling the sector

Swedish giant utility Vattenfall recently halted a wind farm project, the Norfolk Boreas offshore site off the UK, citing costs that had become inflated by 40%.

The 1.4-GW project was to be the first of three wind farms off the UK with a total capital investment of around GBP10bn-11bn ($12.9-14.2bn).

“What we see today, it simply doesn’t make sense to continue this project,” said Vattenfall’s chief executive Anna Borg.

The move rattled an already gun-shy sector that has faced cancellations and doubts on both sides of the Atlantic as costs surge of materials such as steel, transport and labour. It also undoubtedly rattled the UK government which is relying on offshore wind as a major part of the energy transition.