The German energy supplier EnBW is withdrawing from the British offshore wind projects “Mona” and “Morgen” due to a “lack” of state funding from London.
This is a setback for the German group’s offshore efforts. The company had been developing the two projects with a potential total output of three gigawatts in the Irish Sea together with Jera Nex BP since 2021. According to EnBW, the partners had previously received planning permission in record time thanks to their successful project development.
In a statement, the primary decisive factor is cited as “the fact that the two projects did not receive any government funding through so-called “Contracts for Difference” in the recently concluded allocation round of the UK Department of Energy Security and Net Zero”. As a result, they are no longer economically viable in a challenging investment environment. According to the information provided, “other factors that cannot be influenced” also play a role. These include increasingly deteriorating framework conditions such as significant cost increases in the supply chain, higher interest rates and ongoing project implementation risks.
“Morgan” and “Mona” were previously referred to as Lease Areas 1 and 2 and “Yellow North” and “Yellow South” respectively. They are approximately 300 km² and 500 km² in size respectively, are located approximately 30 km from the coast and are in an average water depth of approximately 35 meters.
EnBW’s current wind power portfolio amounts to around 1 GW. In the Baltic Sea, the energy supplier operates the wind farms “Baltic 1” (48.3 MW) and the significantly larger “Baltic 2” (288 MW). In addition to “He Dreiht” (960 MW), the existing offshore wind farms “Hohe See” (497 MW) and “Albatros” (112 MW) are located in the North Sea.
EnBW is in the middle of the largest investment program in the company’s history. The company plans to invest up to €50 billion by 2030. “Due to the wide range of investment opportunities, EnBW is consistently pursuing a value-oriented approach. The company has therefore decided to withdraw from Mona and Mora under these deteriorating conditions,” the statement continued.
The withdrawal is to be recognized in the 2025 annual financial statements in the amount of €1.2 billion through impairments of the investments.
