Norwegian state-owned utility Statkraft has announced it will no longer invest in new offshore wind projects.
The company says the decision comes as the Norwegian government adjusted the utility's investment plan in order to balance the goal of profitable growth within renewable energy with Statkraft's financial solidity.
"Offshore wind power is capital intensive," states CEO Christian Rynning-Tonnesen. "The reduced financial terms from the [Norwegian government] entail that it is not possible for Statkraft to invest in new offshore wind projects."
Statkraft says it will continue to participate in the development of the Triton Knoll and Dogger Bank offshore wind arms in the U.K., but the utility will not invest further in those projects. Statkraft notes that its role in the Dudgeon offshore wind project, also in the U.K., is not affected by the decision.
In addition to ceasing investments in new offshore wind projects, the utility may postpone some international hydropower projects as part of the new investment plan.
"We are facing a challenging period going forward, but our ambitions remain strong, both in Norway and internationally. We need to improve efficiency and profitability in our markets, and by doing so I believe Statkraft will maintain its strong position within renewable energy," says Rynning-Tonnesen.
