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RWE shelves Galloper

German utility RWE Innogy has shelved the 340MW Galloper offshore wind farm amid mounting concerns that the project would miss the April 2017 deadline for the Renewables Obligation.

German utility RWE Innogy has shelved the 340MW Galloper offshore wind farm amid mounting concerns that the project would miss the April 2017 deadline for the Renewables Obligation.

The company said it is “disappointed to announce the decision not to continue with the development of Galloper in its current form” after reviewing the scheme “as a ROC accredited project”.

“This decision reflects the tight time scales available to secure financing whilst still achieving accreditation under the Renewable Obligation, which overall results in an unacceptable balance of risk and reward as compared with the investment disciplines embraced by the RWE group.”

RWE said it will discuss the next steps for the 68-turbine project off the east of England with existing joint venture partner SSE, which has already voiced its intention to withdraw from the scheme.

Galloper is believed to have made considerable progress in discussions with potential backers and supply chain partners, many of whom were expecting imminent contract awards. The Green Investment Bank had offered support but this was not deemed sufficient to mitigate the risks.

Sources close to the project said the board-level decision from RWE came as a complete surprise to those on the front line gearing up to deliver the scheme. One said there is a "palpable sense of shock across the (RWE) project team and contractors in the supply chain".

The utility said: “Offshore wind continues to be a key part of RWE’s renewable energy strategy. Our offshore operating portfolio will exceed 1GW following completion of Nordsee Ost and Gwynt y Môr."
Image: Gall


Source: http://renews.biz/77226/rwe...

OCT 10 2014
https://www.windaction.org/posts/41421-rwe-shelves-galloper
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