Finance
EnBW pulls plug on two UK offshore wind farms, takes $1.4 billion impairment
Published by Global Banking and Finance Review
Posted on January 15, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 15, 2026
FRANKFURT, Jan 15 (Reuters) - German utility EnBW 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.
($1 = 0.8598 euros)
(Reporting by Christoph SteitzEditing by Madeline Chambers)
An impairment charge is an accounting term that refers to a reduction in the carrying value of an asset when its market value falls below its book value, indicating that the asset is no longer worth its original value.
Offshore wind farms are facilities that generate electricity by harnessing wind energy from turbines located in bodies of water, typically oceans or large lakes, providing renewable energy with minimal environmental impact.
Renewable energy is energy derived from natural sources that are replenished at a faster rate than they are consumed, such as solar, wind, hydroelectric, and geothermal energy, contributing to sustainable development.
A financial impairment occurs when an asset's market value decreases significantly, leading to a loss that must be recognized in financial statements, reflecting a decline in the asset's value.
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