EnBW has sold its stake in the 1500MW Mona offshore wind farm off north Wales to co-development partner JERA Nex bp, with the latter signing a lease agreement for the Irish Sea site to exit the costly option fee period.
The German developer and its former UK-Japanese partner, which did not disclose the sale price, said the two companies have meanwhile decided not to continue with the neighbouring 1.5GW Morgan scheme.
“Proceeding with the Mona offshore wind farm underscores JERA Nex bp’s plans to support the UK’s energy security and net zero goals,” said the company.
“We look forward to continuing our partnership with The Crown Estate, stakeholders and others to bring this nationally significant project to fruition.”
“Amid current market conditions, JERA Nex bp has decided not to proceed with the Agreement for Lease for the Morgan offshore wind project. JERA Nex bp and EnBW will work with stakeholders to manage the implications of this decision and conclude project activities carefully and respectfully.”
EnBW yesterday said market conditions and a failure to win an AR7 CfD meant it was not moving forward with either project while the UK-Japanese developer said it was exploring options for advancing the sites.
The 3GW complex was acquired in 2021’s Round 4 leasing exercise for a record high option fee price of over £231m per 1.5GW plot.
The developers have been paying option fees annually ever since. Consent for both sites was secured last year.
EnBW and JERA Nex bp will continue to pursue the Morven project in Scotland together, the German developer said.
EnBW said offshore wind continues to be an important business.
“The current focus is on completing the construction and commissioning of the 960 MW He Dreiht offshore wind farm in the German North Sea this summer. Furthermore, EnBW is developing its 1,000 MW Dreekant project in the German North Sea.”
Gus Jaspert, managing director for marine at the Crown Estate said the seabed landlord was “very pleased” JERA Nex BP had decided to continue development of, and entered into lease for, the Mona project.
He added: “The UK retains a strong pipeline of offshore wind development, and we remain confident in the continued success of the sector.”
A spokesperson said the Crown Estate will now work with the developers on handing back the Morgan scheme and update the market on next steps “in due course”.