National Grid Ventures has recorded an impairment of GBP 303 million (approximately EUR 360 million; USD 402 million) for the Community Offshore Wind project in its fiscal year 2024/2025 results. The joint venture with RWE paused development due to challenging conditions in the US offshore wind sector.
National Grid commented, “During the year, our Community Offshore Wind joint venture paused development activity in line with the broader slowdown of the US offshore wind industry. While we have confidence in the long-term need for offshore wind in the northeast, significant short-term policy uncertainty has led us to recognize an accounting impairment of £303 million as an exceptional charge.”
The 1,314 MW Community Offshore Wind project is the initial phase planned for the New York Bight lease area, acquired by RWE Renewables and National Grid in a federal auction in 2022.
The lease area has potential for 3.2 GW of installed offshore wind capacity.
In late April, RWE announced a halt to all its offshore activities in the US.
Speaking at the annual general meeting on April 30, RWE CEO Marcus Krebber stated that investments in US projects would proceed only if all necessary federal permits are obtained, tax credits are secure, and tariff risks are mitigated.
Krebber highlighted the rising electricity demand in the US as creating a favorable market environment, emphasizing that renewables and battery storage are well-positioned to meet this demand.
Despite this, Krebber expressed caution due to political developments, saying, “We have introduced higher requirements for future investments in the US.”
Last year, the RWE and National Grid Ventures joint venture entered the Community Offshore Wind project into New York’s fifth solicitation for offshore wind energy, submitting proposals in October 2024.
In a previous solicitation, canceled by New York State after GE Vernova withdrew plans for its 18 MW wind turbine, the joint venture participated with the 1,314 MW phase of Community Offshore Wind.
In October 2024, the joint venture put forward a proposal for two phases with a total capacity of 2.8 GW, aiming to generate first power by 2030 and become fully operational two years later.
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