Stopping the development means that RWE Innogy has also lost its seabed rights.
“As the offshore wind industry develops over the next decade and on the back of more viable technologies being demonstrated, expected innovation and cost reduction may in the future open up opportunities in the more challenging areas, such as in the Bristol Channel,” the company said.
“This is not a decision we have taken lightly, however given the technological challenges and market conditions, now is not the right time for RWE to continue to progress with this project,” said Paul Cowling, director of offshore wind at RWE Innogy. “We will continue to focus on the other less technically challenging offshore projects within our extensive offshore pipeline of up to 5.2GW. Offshore wind remains one of the strategic objectives for RWE and the UK has a major role to play within our portfolio.
“We are very grateful for the support we have received from the many interested parties involved in helping us to develop the Atlantic Array project, however the commercial reality means that in the current market conditions, overcoming the technical challenges within The Bristol Channel Zone would be uneconomic for RWE at this time.”
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