Skip to main content

Centrica could pull £2bn investment in windfarm

British Gas’ parent company may abandon investment plans in renewable energy development due to lower energy subsidies

Centrica may pull out of windfarm project

Centrica may pull out of windfarm project

The Telegraph has reported that Centrica will no longer consider building the Race Bank windfarm, if the government does not substantially increase subsidies.

Subsidy levels are not going to be revealed until December, however, they are not expected to be in line with what Centrica and its unnamed financial partner would require to make an investment.

The windfarm was expected to power up to 450,000 households.

Cloudy future for offshore windfarm industry

According to the Telegraph’s sources, ministers are not concerned to see projects to build windfarms scrapped as they believe some energy firms are asking for unreasonable returns.

Should the Race Bank not be built, new doubts will arise surrounding over the future of Britain’s offshore windfarm industry, despite ministers publically supporting developments.

‘If we do not get the return it is not something […] we can contemplate’

Centrica was planning to invest close to £200 million in the development of the Race Bank windfarm. Talks with the government regarding the financing began earlier this year.

Speaking on the project in May, Centrica Chairman Sir Roger Carr said: “If the Government wish to have as part of their mix the renewable wind offshore, there is a price for that. We are happy to deliver the product provided we get the return that is reasonable. If we do not get the return it is not something, like nuclear, we can contemplate.”

Subsidy levels could still be increased

Energy Minister Michael Fallon has said that current proposals are not set in stone and will be reviewed in response to consultation responses.

He did, however, add that  a number of companies involved in the development of windfarms were happy with the current suggested rates.

Read more

Energy bills could fall by £75

Renewable sector welcomes assurances on green subsidies

Energy analyst slams government nuclear deal