EnBW is withdrawing from the British offshore wind farm projects Mona and Morgan. This brings its involvement in the Irish Sea to a temporary end. A write-down of €1.2 billion will be recorded in the 2025 financial statements, as the company has already invested heavily in the projects. Without government subsidies, the wind farms are not economically viable for EnBW. Ultimately, electricity customers will bear the costs of these failed projects. (schwaebische: 15.01.26)
Write-down due to failed government funding
The write-down is not a consequence of an operational downturn. It results from a revaluation of project values. The UK grants subsidies for offshore installations through so-called contracts for difference. These guarantee fixed electricity prices for many years. Without this mechanism, the economic basis is lacking.
EnBW participated in the auction with its partner Jera Nex BP but was unsuccessful. The company stated that it had received “no government funding.” This eliminates the predictable revenue base. From the company’s perspective, operating the plants is no longer profitable. Therefore, the write-down applies to the already capitalized project costs.
Millions for planning, permits, and preliminary work
Offshore wind power incurs high costs long before a single rotor turns. EnBW invested for years in securing land, environmental impact assessments, grid connection concepts, and project development. These investments were considered valuable as long as a subsidy was realistic. After the auction, this assumption fundamentally changed.
The write-down reflects precisely this shift. The planned cash flows have disappeared, while the expenses are real. Therefore, EnBW is correcting its balance sheet. Although the company emphasizes that the measure does not affect cash flow, the capital is nevertheless economically lost.
Competition intensifies pressure on offshore wind power
While EnBW missed out, RWE secured the majority of the British subsidy commitments. The competitor will receive fixed payments for several projects over a period of 20 years. This demonstrates how fierce price competition has become in the offshore wind energy sector.
Rising supply chain costs and higher interest rates are further exacerbating the situation. EnBW stated that profitability is no longer guaranteed “according to current standards and criteria.” This assessment applies not only to a single project, but to the entire offshore wind power sector under current conditions.
Write-downs have consequences for electricity customers.
Formally, the electricity customer doesn’t directly pay for the write-downs. In practice, however, such losses impact a utility’s overall strategy. EnBW supplies around 5.5 million energy consumers. Declining profits restrict investment options and increase pressure on prices, grid fees, and long-term calculations.
The company is therefore prioritizing investments in Germany. EnBW plans to invest up to €50 billion by 2030, primarily in grid infrastructure. Projects without subsidies fall victim to this strategy. For electricity customers, this means that past misinvestments don’t simply disappear without consequence when they are settled on the balance sheet.
Open Morven Project and Strategic Decision
The future of the Morven project off the coast of Scotland remains uncertain. EnBW is also collaborating with Jera Nex BP on this project. However, it is still in its early stages. A decision will follow later.
Nevertheless, the current write-down marks a strategic turning point. Without government subsidies, guaranteed prices, and sufficient returns, EnBW is pulling the plug. Offshore wind energy therefore remains a high-risk business, the costs of which are ultimately always part of the electricity bill.