EnBW has decided to pull out of the 3GW Mona and Morgan offshore wind projects in the UK, which it had been co-developing with JERA Nex bp.
EnBW said its primary reason for its withdrawal is that the projects did not receive government support through Contracts for Difference in Allocation Round 7.
The company stated that deteriorating conditions such as significant cost increases across the supply chain, higher interest rates and ongoing project implementation risks mean the projects are no longer economically viable as per its standards and criteria.
JERA Nex bp said in a statement to reNEWS it has its “own strategy, financial framework and geographic priorities”. “We believe that there are still good pathways to delivery in our UK portfolio and we are assessing our options for taking the projects forward,” a spokesperson said.
EnBW alongside BP bid an option price of £231m per 1.5GW plot in the 2021 Round 4 auction to secure the acreage and has been paying the options fees annually every since.
The partners had previously obtained a building permit in record time thanks to their successful project development, according to EnBW.
EnBW added that the withdrawal results in an impairment of €1.2bn in the annual report 2025.
“The extraordinary write-down is outside the scope of adjusted EBITDA and has no cash effect,” it said.
EnBW added that its forecast range for adjusted EBITDA of €4.8 to €5.3bn for the financial year 2025 remains unchanged.