Norfolk Boreas windfarm work could resume after energy price rise

Swedish company Vattenfall says the price rise is a "very positive signal"

There are growing hopes that work on a £10bn windfarm off the Norfolk coast will resume after the government agreed to pay more for energy production.

Earlier this year, Swedish company Vattenfall paused work on Norfolk Boreas located 50 miles off the coast of Cromer.

But ministers have agreed to a 66% increase in the amount they will pay for offshore electricity generation.

Vattenfall described the move as "a very positive signal".

Lisa Christie, Vattenfall interim UK country manager, said: "[The government] understands the current market situation and that it wants to attract investment to ensure these projects are built."

Kevin Keable, chief executive of the East of England Energy group, added: "This is the sort of thing that we hope will kick start this important project again.

"That would have a really positive effect on jobs and skills in the region as well as benefit the hundreds of companies who are part of the supply chain."

North Sea's importance

Windfarms off the East Anglian coast are producing 43% of England's wind power and that figure is expected to grow with more developments in the pipeline.

But in September, the latest auction of offshore contracts attracted no bidders because the energy companies thought the price was too low, leading to fears that rising costs could slow down North Sea development.

But the government, keen to encourage more renewable energy, hopes that it has now done enough to attract investment by lifting the price it pays from £43 per MWh to £73.

Vattenfall seems to be hinting that it will.

"Offshore wind will be the backbone of the energy transition across Europe and the long-term energy outlook for the market remains strong," said Ms Christie.