In a recent development, Vattenfall, a Swedish energy giant, has announced that it is shelving its plans to develop the Norfolk Boreas offshore wind farm, citing that it no longer makes financial sense to continue with the project.
The decision has raised questions about the future of the UK's renewable energy industry, which aims to double wind capacity by 2030 and achieve net-zero emissions by 2050.
The reason behind Vattenfall's decision is the escalating costs of offshore wind farm development.
The company said that its costs have increased by 40% due to factors such as inflation, supply chain issues, and rising wages.
The guaranteed price for electricity generated by the wind farm under the Contracts for Difference (CfD) scheme was not sufficient to cover these increased costs, according to Vattenfall's Chief Executive Anna Borg.
The decision to shelve the Norfolk Boreas plan affects not only Vattenfall but also the two other Norfolk sites, Vanguard East and Vanguard West.