RWE pulls back from 340-MW Galloper offshore wind project

Oct 13, 2014 - German energy group RWE AG (ETR:RWE) has decided to discontinue the development of the 340-MW Galloper wind farm in UK waters amid concerns about the project’s financing.

In a statement on Friday, RWE explained that its withdrawal is a result of the “tight timescales” for securing financing and achieving accreditation under the UK’s Renewable Obligation mechanism. This “results in an unacceptable balance of risk and reward,” the firm noted, adding that it will no longer pursue the development of the scheme in its current form.

The Galloper project is 50/50 owned by RWE Innogy UK and UK utility SSE Plc (LON:SSE), but the latter pulled out from the joint project this spring saying it was not seen to be economically viable. Now RWE will discuss the next steps for the scheme with its partner, it said.

The wind park was planned to have up to 140 turbines off the Suffolk coast as an extension of the 504-MW Greater Gabbard offshore wind farm in the Thames Estuary. The latter has been operational since September 2012. Galloper was estimated to produce enough electricity for 330,000 average UK homes each year once fully built.

RWE noted that it will continue working on its up to 900-MW Triton Knoll offshore wind project in the UK and the up to 7.2-GW Dogger Bank wind zone as part of the Forewind consortium. After it brings online the 295-MW Nordsee Ost wind farm in the North Sea and the 576-MW Gwynt y Mor complex off North Wales, the firm’s offshore operating portfolio will surpass 1 GW, it said.

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