National Grid has announced that development of the Community Offshore Wind project, a joint venture with RWE Renewables, has been paused due to ongoing challenges in the USA offshore wind sector.
The company has recognised a £303 million impairment, reflecting its current assessment that the investment has negligible value. The decision to halt development aligns with a broader slowdown in the USA offshore wind industry, which has been affected by near-term policy uncertainty and shifting market conditions. National Grid stated that while long-term demand for offshore wind in the northeast remains strong, the lack of policy clarity has undermined short-term viability for the project.
As a result of this impairment and other exceptional items, National Grid Ventures’ statutory operating profit declined by £553 million in the 2024/25 financial year. Alongside the impairment related to Community Offshore Wind, this figure includes £57 million in transaction and separation costs tied to the planned sale of National Grid Renewables, and £15 million in commodity remeasurement losses.
Underlying operating profit for National Grid Ventures was also down, falling £89 million compared with the previous year. In the UK, income from interconnectors declined as price spreads in energy markets returned to typical historical levels. Additionally, the Grain LNG terminal in the UK and the National Grid Renewables business in the USA were reclassified as ‘held for sale’ as of 30 September 2024, with depreciation halting from that point.
In the USA, National Grid’s profit was also affected by a reduction in the number of renewable projects sold to its Emerald joint venture.
