Vestas says it will not proceed with its planned development of a giant manufacturing facility for its V164 7MW offshore wind turbine in Sheerness, southern England.
The Danish turbine producer does not offer a clear explanation for the decision in a statement announcing the end of the plan.
Chief sales officer Juan Araluce says: ”Vestas’ strong commitment to the development of both the offshore and onshore wind industries is not affected by this decision. We will remain active across the two markets in the UK as they both continue to show considerable potential.”
Vestas sources recently told Recharge that the company would probably not build a major manufacturing plant for the V164 until as late as 2018, while it recently postponed the installation of its first prototype of the turbine until 2014.
It first took a one-year option on the 70-hectare Sheerness site in May 2011, with the possibility to extend for another 12 months – which it decided not to exercise.
With its own deployment plans slowing, Vestas is likely to have been unwilling to continue paying to retain first call on the facility for an extended period.
It received local planning approval for the proposed plant in May this year.
Along with other turbine manufacturers, Vestas has expressed growing unease with the government’s handling of the electricity market reform process
The company has always said that a final decision on the factory would be dependent on receiving firm and unconditional orders for its turbine.