German energy utility giant EnBW has dropped the Mona and Morgan offshore wind projects in the UK after not receiving government support through the AR7 contracts for difference round.

The company has been developing the two projects with a potential total capacity of 3GW in the Irish Sea since 2021, together with Jera Nex BP.

The partners had previously obtained a building permit in record time thanks to their successful project development.

According to the company, the projects were no longer economically viable as per EnBW’s criteria in a challenging investment environment.

Other reasons include increasingly deteriorating conditions, such as significant cost increases across the supply chain, higher interest rates, and ongoing project implementation risks.

EnBW is currently in the middle of the largest investment program in its corporate history. The company plans to invest up to €50bn ($58bn) by 2030. The company has therefore decided to withdraw from both projects due to deteriorating conditions.

The withdrawal from the projects Mona und Morgan by EnBW results in an impairment of €1.2bn ($1.4bn) in the annual report for 2025. The extraordinary write-down is outside the scope of adjusted EBITDA and has no cash effect.

EnBW’s forecast range for adjusted EBITDA of €4.8 to 5.3bn ($5.57 to 6.27bn) for the financial year 2025 remains unchanged.