Thursday, May 1, 2008

It's Not Just Coal Plants Getting More expensive: Shell pulls out of key wind power project (RDS; EOA.F)

From the Financial Times:

Plans for a massive expansion of offshore wind power generation were in disarray on Wednesday night after Shell pulled out of the UK’s flagship project.

The London Array was to be the world’s biggest offshore wind farm, with 341 turbines in the Thames Estuary capable of generating 1,000 megawatts of power – enough to power a quarter of London’s homes....

...Wind farms off the coast face less opposition, but are more expensive and require higher subsidies to attract developers. John Hutton, secretary of state for business, announced plans last year to build the equivalent of 33 London Arrays by 2020.

Shell declined to give detailed reasons for its decision. The cost of the London Array was estimated at £1bn in 2003 and £1.5bn in 2005, but has risen to at least £2bn to £2.5bn as a global rush to wind energy has driven up the price of turbine components....MORE