RWE cancels 1.2 GW UK Atlantic Array project

• 10 years ago (2013-11-27)
• Junior Isles

Europe 1089 Renewables 776

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Germany energy giant RWE has called off its plan to build the world's largest offshore wind farm in British waters ‒ the £4 billion, 1.2 GW Atlantic Array ‒ citing current market conditions and technical problems.

The Atlantic Array project off south-west England would have featured up to 240 wind turbines and provided power for 900 000 British homes, and the project’s collapse has added fire to the recent political debate over energy bills, capacity investment and green levies.

Prime Minister David Cameron, faced with an opposition advocating an energy price freeze, has promised in turn to cut green levies which currently comprise some 10 per cent of UK household energy bills.

Paul Coffey, chief operating officer at RWE's renewable energy division Innogy, has previously complained in the media that he could not justify investment on the basis of promises alone and blamed the political row over energy for investment uncertainty.

A spokeswoman for RWE has said that the company's decision to cancel Atlantic Array was based on technical factors, including the deep waters and adverse seabed conditions, rather than the political row.

RWE has recently undertaken a major restructuring of its business, resulting in 13 000 job losses since 2011, 18 per cent of its workforce.

Renewables accounted for 15.5 per cent of British electricity generating capacity, 19.5 GW, as of the second quarter of 2013 and the government maintains it is on track to meet its target of 30 per cent by 2020.

Prime Minister Cameron's spokesman has played down concerns over RWE’s announcement.

"You've seen 29 billion pounds of private sector investment in renewable energy since 2010," he said. "The UK is a world leader in offshore wind power. You are seeing a very significant and sustained investment.