Following a review, the London Array consortium has decided not to proceed with the development of Phase 2 of the offshore wind farm primarily due to the due to the technical challenges and the environmental uncertainties around the site.
The decision, which will not affect the consortium's existing operations at Ramsgate and staffing levels, was made as the site required a waiting period of at least three years to access the potential impact of the development on birds.
The project consortium, which includes DONG Energy, E.ON and Masdar, has urged The Crown Estate to terminate the agreement for lease for the Phase 2 area.
London Array general manager Mike O'Hare said, "We believe it will take until at least January 2017 for that data to be collected and although initial findings from the existing Phase 1 site look positive, there is no guarantee at the end of three years that we will be able to satisfy the authorities that any impact on the birds would be acceptable.
"In the absence of any certainty that Phase 2 would be able to go ahead, our shareholders have decided to surrender The Crown Estate agreement for lease on the site, terminate the grid connection option, and concentrate on other development projects in their individual portfolios," O'Hare added.
London Array earlier received consent for a wind farm of up to 1000MW capacity with 630MW in Phase 1.
Phase 2 had the potential to provide capacity for a further 370MW. However, due to constraints on the site, plans for only 240MW were made with an expectation that the final capacity would be closer to 200MW.