National Grid Books £303m Impairment on Community Offshore Wind Project
British utility National Grid has recorded a £303m ($403m) impairment on its 2.8GW Community Offshore Wind project in the New York Bight. The project is being developed through a joint venture with German firm RWE.
The Community Offshore Wind joint venture has halted development activities, citing challenges within the US offshore wind industry exacerbated by President Donald Trump’s opposition to offshore wind projects.
RWE also announced the cessation of all offshore activities in the US and disclosed plans to reduce its workforce in the Boston area by approximately 73 employees.
In its recent financial results, National Grid acknowledged the long-term potential for offshore wind generation in the US northeast. However, the company cited significant near-term policy uncertainty as a key factor in the decision to take the $403m impairment as an “exceptional charge.”
The substantial impairment led to a 2.1% decline in asset growth within National Grid Ventures.
Both RWE and National Grid have indicated a reduction in the scope of their development activities until there is greater clarity and stability in the offshore wind sector.