No allocation in the current round for guaranteed electricity revenues / Impairment of EUR 1.2 billion in annual financial statements 2025
EnBW Energie Baden-Württemberg AG (EnBW) has decided to not continue the offshore wind projects Mona and Morgan in the UK. The company has been developing the two projects with a potential total capacity of three gigawatts in the Irish Sea since 2021 together with Jera Nex BP (JNBP). The partners had previously obtained a building permit in record time thanks to their successful project development.
The primary reason for EnBW's withdrawal is that the two projects did not receive government support through so-called 'Contracts for Difference' in the recently completed allocation round of the UK Department of Energy Security and Net Zero.
In a challenging investment environment, projects no longer economically viable as per EnBW’s criteria
In combination with other factors beyond its control, this implies that the projects are no longer economically viable as per EnBW's standards and criteria. These include increasingly deteriorating conditions such as significant cost increases across the supply chain, higher interest rates and ongoing project implementation risks.
EnBW is in the midst of the largest investment program in its corporate history. The company plans to invest up to EUR 50 billion by 2030. Due to the wide range of investment opportunities, EnBW pursues a consistently value-oriented approach. The company has therefore decided to withdraw from both projects under these deteriorating conditions.
No impact on EnBW's earnings forecast for 2025
The withdrawal from the projects Mona und Morgan by EnBW results in an impairment of EUR 1.2 billion in the annual report 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 EUR 4.8 to 5.3 billion for the financial year 2025 therefore remains unchanged.
Link to the related ad hoc notification: EnBW not to continue UK offshore Mona and Morgan | EnBW
Source: EnBW
