Germany's EnBW has canceled two offshore wind projects in the UK totaling 1.2 gigawatts, citing failure to secure government funding under the UK's Contracts for Difference scheme. The decision marks a significant setback for renewable energy development in the North Sea.
- EnBW canceled two offshore wind projects: Bardsey and Firth of Forth, totaling 1.2 GW.
- Projects missed the December 2025 deadline for securing UK Contracts for Difference (CfD) support.
- Approximately €450 million invested in pre-construction activities across both sites.
- Over 1,000 jobs impacted in construction and supply chain sectors.
- UK offshore wind sector has seen 18 GW of projects delayed or canceled since 2022.
- UK government reviewing CfD auction design amid growing investor concerns.
EnBW has formally scrapped two offshore wind projects—Bardsey and Firth of Forth—located in the UK’s North Sea, with a combined capacity of 1.2 GW. The projects were initially planned to contribute to the UK’s 2030 renewable energy targets but were abandoned after the company missed the December 2025 deadline to secure funding under the government’s Contracts for Difference (CfD) program. Without financial guarantees, the projects were deemed economically unviable, despite years of development and site preparation. The cancellation affects over 1,000 jobs tied to construction and supply chain activities, including local engineering firms and offshore installation contractors. EnBW had invested approximately €450 million in feasibility studies, environmental assessments, and early infrastructure work across both sites. The German energy firm cited rising interest rates and inflationary pressures as key factors that increased project financing risks, rendering the cost projections unsustainable. The move underscores growing challenges in the UK’s offshore wind sector, where more than 18 gigawatts of announced projects have faced delays or cancellations since 2022 due to fluctuating support mechanisms and supply chain bottlenecks. Market analysts note that the withdrawal of major players like EnBW could slow the UK’s progress toward its 50 GW offshore wind target by 2030, particularly in the central and eastern North Sea zones. Offshore wind developers and industry groups are now calling for more stable, long-term policy frameworks to restore investor confidence. The UK government has acknowledged the setbacks and is reviewing the CfD auction design, though no new tender rounds are expected before Q3 2026.