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9 May 2008 - Centrica, one of the UK's biggest energy generators, has warned that the prospect of making money from wind farms is looking "marginal".
The company says that the rising cost of offshore wind farms could end up ruining the government's renewable energy targets. The comments come a week after Shell withdrew from a project that was set to become the world's largest wind farm.
The UK government wants 33 GW of offshore wind capacity built by 2020.
Mr Sambhi, Centrica's director of power business unit, says the firm is still planning to build three new wind farms in the UK, but believes that current conditions are making the government's renewable plans look very ambitious.
He said: "The economics at the moment make the returns marginal. The worrying trend is that if the manufacturing costs continue to increase, then I think that the wind target is under threat," said Mr Sambhi.
There are effectively only two companies that produce wind farms for the UK market - Vestas of Denmark and the German company Siemens.
Both have a huge order book, with Vestas alone having nearly £4bn worth of orders yet to be delivered. The turbine manufacturers point to the rising cost of raw materials and the difficulty they have in securing the parts they need.
Uncertainty over the future of the 1 GW London Array wind farm off the coast of Kent has increased tension in the industry.
Shell, one of the three major partners in the London Array - meant to be the world's largest wind farm, last week pulled out of the project. The cost of the project is thought to have doubled since 2003, when it was estimated at £1bn ($1.96bn).
The BBC has learnt that just one turbine manufacturer made a tender for the project, increasing the impression amongst some in the industry that manufacturers are able to choose their price for the projects they take on. High costs have forced the energy companies to look elsewhere for funding.
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