Speaking about the decision, NRG CEO David Crane said: "Our people have worked hard and we've made a considerable financial investment in the Wind Park, but that effort cannot overcome the difficult and unfortunate realities of the current market.
"We're not giving up, but at this moment we can't rationally justify further investment in this project without the prospect that it can move forward within a reasonable timeframe."
NRG said it will close its Bluewater Wind development office but would be maintaining its development rights and contiue seeking development partners and equity investors.
In March, NRG subsidiary Bluewater Wind submitted its planning application for the Mid-Atlantic Wind Park to the US government. The move was announced by secretary of the interior Ken Salazar and BOEMRE director Michael Bromwich and was the first project to be subject to a streamlined offshore regulatory process.
In July, the project received a setback after plans to build an underground power line for the project were voted down. Bluewater had been in discussions with Sussex council over plans to build an underground transmission line through Bethany Beach.
NRG acquired Bluewater Wind from private equity group Riverstone in 2009. It was previously owned by the now-defunct Babcock and Brown.