Energy giant RWE has pulled out of a wind farm off the Suffolk coast, citing difficulty in securing finance.
The firm said it could not meet a deadline imposed by the government, which would have given the project accreditation from the Renewables Obligation.
Developer partner Scottish and Southern Electricity (SSE) abandoned the scheme in March.
The proposed Galloper wind farm involves construction of 85 turbines 30km off the Suffolk coast, which would provide power to 330,000 homes.
A statement from RWE said: “Despite positive investor interest, including that of the Green Investment Bank, and support from the project’s supply chain partners, we are disappointed to announce the decision not to continue with the development of Galloper in its current form.
“This decision reflects the tight time scales available to secure financing while still achieving accreditation under the Renewables Obligation, which overall results in an unacceptable balance of risk and reward.
“Following this decision, we will discuss the next steps for the Galloper project with our existing partner SSE.
“We will continue to progress development activities at our other offshore projects across Europe, including Triton Knoll and Dogger Bank in the UK.”
But Waveney District Council, the local authority which is supporting the scheme, believes the wind farm can still be built with finance from another backer.
Bruce Provan, cabinet member for economic development, said: “While the withdrawal of RWE from the Galloper project is disappointing, we are confident that is only a bump in the road and not the end of the race.
“The required finance for the project can still be assembled.
“Therefore we are probably only looking at a delay of around 12 months while an alternative provider is found.”