E.ON UK and Energi E2, the companies behind the Scarweather Sands offshore wind farm, have announced today that they are delaying construction of the scheme.

The project, which will see 30 wind turbines built next to the Scarweather sandbank off the South Wales coast in Swansea Bay, has now been postponed until 2008/9 because the scheme is not currently financially viable.

Jason Scagell, Director of E.ON UK Renewables, said: “We’ve taken a close look at the tenders and have reluctantly decided that building Scarweather simply isn’t possible under current market conditions.

“Demand for the supply of key components such as turbines, offshore cabling and foundations is so high at the moment that it’s very difficult to make projects cost effective.”

Erik Kjaer Soerensen General Manager, Project Development, E2 Wind Energy, said: “Despite this setback we’re hopeful that, by 2008, those market conditions will have changed in our favour because we still believe Scarweather is a good project.”

The project will continue to progress the remaining pre-construction activities until the construction tender process is reactivated in the final quarter of next year.