Renewables blow as large-scale Irish Sea windfarm plan is scrapped

Plans to develop a large-scale windfarm off the Lancashire coast have been scrapped after the developer pulled the plug on the project.

The Morgan Offshore Wind Project would have seen 96 turbines built more than 20 miles (32km) off the Fylde coast which developers said would produce 1500MW - enough electricity to power nearly two million homes every year.

However, German utility EnBW has now pulled out of the project after it lost out in energy secretary Ed Miliband’s latest round of support for renewables.

In a statement EnBW said: “The primary reason for this decision is the fact that no government support through so-called ‘Contracts for Difference’ was obtained in the currently concluded allocation round.”

It added that other factors beyond its control, including a significant hike in costs across the supply chain, lower electricity market prices and higher interest rates meant the project was no longer economically viable.

As well as the Morgan project, EnBW announced it was also pulling out of the Mona windfarm development off the coast of North Wales.

EnBW’s decision has seen Morgan scrapped. However, its joint venture partner in both projects, JERA Nex bp, has acquired its stake in 1.5GW Mona, keeping that Irish Sea development alive.

Nathalie Oosterlinck, chief executive of JERA Nex bp, said: “Proceeding with the Mona offshore wind farm underscores JERA Nex bp’s plans to support the UK’s energy security and net zero goals.

“We look forward to continuing our partnership with The Crown Estate, stakeholders and others to bring this nationally significant project to fruition.”

In its statement the business said: “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.”

The Contracts for Difference (CfD) scheme is the government’s main mechanism for supporting low carbon electricity generation.

CfDs incentivise investment in renewable energy by providing developers of projects with high upfront costs and long lifetimes with direct protection from volatile wholesale prices.

Fylde MP Andrew Snowden has campaigned against a proposed cabling corridor route for both the Morgan project and the proposed Morecambe wind farm which would also sit off the Lancashire coast.

He said of the Morgan announcement: “This is significant news and it throws a very large spanner into the works of the Morgan and Morecambe cabling corridor plans.

“For years, residents have been told that digging up beaches, tearing through countryside, harming wildlife, and putting businesses at risk was all unavoidable and necessary. It now appears that when the subsidies did not stack up, the project collapsed. That speaks volumes.”

He added: “The situation remains fluid and unclear, particularly for the neighbouring Morecambe Windfarm project. The proposed cabling corridor through Fylde was being jointly funded by both Morgan and Morecambe, and it is now uncertain whether the Morecambe project remains financially viable on its own.

“There are now serious unanswered questions. Another developer could attempt to take over the Morgan project. The Morecambe project could attempt to press on alone. Or we could end up in an utterly absurd situation where one project proceeds now, only for another to come back later demanding a second route through Fylde.”