In its interim report for January to June 2023, Vattenfall announced today (July 20) that it is stopping development of its 1.4GW Norfolk Boreas offshore wind project.

Vattenfall has decided not to take an investment decision on Norfolk Boreas due to higher inflation and capital costs which have affected the entire energy sector, but the geopolitical situation has made offshore wind and its supply chain particularly vulnerable. Overall, Vattenfall has seen costs for Norfolk Boreas increase by up to 40%.

Claire Mack, Chief Executive at Scottish Renewables, said:
“Today’s announcement from Vattenfall is a major wake up call for the UK Government who are failing to take account of the increased cost pressures and economic challenges facing offshore wind developers.

“If projects in England are pausing development because they are not commercially viable then the projects that we have here in Scotland, which are more expensive to operate than those elsewhere in the country, are under threat and are clearly even more vulnerable to these cost pressures.

“ScotWind is set to play a major role in the UK hitting its net-zero ambitions and is an opportunity to deliver an offshore wind industry that will support thousands of jobs but if developers delay, pause or pull out of investment decisions completely it means consumers will face higher bills for longer and developers’ ability to invest in local supply chains will be undermined.

“The UK Government needs to urgently review its investment framework for offshore wind and recognise the heavier costs on projects here in Scotland or they face losing this once in a lifetime opportunity to enable the best projects to achieve their net zero and industrial growth ambitions.”

KeyFacts Renewable Energy Directory: Vattenfall