FRANKFURT, Jan 15 (Reuters) - German utility EnBW (EBKG.DE) , opens new tab on Thursday said it was taking a 1.2 billion euro ($1.4 billion) impairment charge after scrapping two wind projects in Britain, a direct consequence of losing out in a landmark UK offshore tender.

The two offshore wind projects -- Mona and Morgan -- with a potential total capacity of 3 gigawatts did not qualify for government support via so called contracts for difference in this week's record auction.

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The two projects are being jointly developed with JERA Nex bp, a 50-50 joint venture between British oil major BP (BP.L) , opens new tab and Japan's JERA.

EnBW said the decision to pull the plug on the projects was also based on other factors "including a significant increase in costs across the supply chain, lower electricity market prices and higher interest rates".

EnBW, which is mostly owned by the German state of Baden-Wuerttemberg and related municipalities, also referred to unspecified project implementation risks, adding the charges were non-operational and would therefore not affect cash flows.

($1 = 0.8598 euros)

https://www.reuters.com/sustainability/climate-energy/enbw-pulls-plug-two-uk-offshore-wind-farms-takes-14-billion-impairment-2026-01-15/