German energy company RWE has confirmed its decision to discontinue work on the Kent offshore wind project in Australia.
RWE said it decided to cease development of the 2GW Kent offshore wind project off the Gippsland coast in Victoria following close to a year of feasibility studies.
"This decision follows a review of the project’s competitiveness in current market conditions, as well as ongoing uncertainties around supply chain costs and the future design of the auction framework," RWE said in a press release. "We want to be clear that this decision relates solely to the Kent offshore wind project."
The company assured that it is continuing to develop, build and operate, "a diverse pipeline of renewable energy projects across Australia, including large-scale battery storage and onshore wind."
RWE's pulling out of its Kent offshore wind project is the latest in a succession of setbacks to befall Australia's offshore wind sector.
In July, Spanish renewables company BlueFloat pulled out of a 2.5GW wind farm project off the coast of Victoria due to what it said are, "unfavourable market conditions and financial challenges."