Swedish energy group Vattenfall on Thursday said it had suspended development of its 1.4GW Norfolk Boreas wind farm after costs on the project rose 40 per cent.

Vattenfall’s announcement is likely to heap pressure on the government, which is in the process of awarding the next round of fixed-price contracts. Developers have already warned that the maximum price of £44/MWh in 2012 prices is also too low.