Rising development costs have led to the postponement of a major wind project.
Community Windpower said its Sanquhar II Wind Farm in Scotland, which would have been the UK’s fourth-largest onshore project with a capacity of 308MW, is now on hold.
It said estimated development expenses had risen from around £300m to £500m due to factors including inflation and higher interest rates.
Community Windpower has called on the UK government to consider several measures to improve the prospects for onshore wind, including an exemption from the windfall tax and the introduction of investment allowances.
Rod Wood, Managing Director at Community Windpower, stated: “We’ve run the financial models. We cannot get the return on capital that we need to cover the bank requirements for financing.”