Construction of an offshore wind farm off south Wales has been put on hold because current costs are too high, the project's backers say. Despite a £10 million government grant, E.ON UK and Danish energy company Energi E2 have postponed the 30 turbine Scarweather Sands project in Swansea Bay until 2008/9. "We've taken a close look at the tenders and have reluctantly decided that building Scarweather simply isn't possible under current market conditions," says E.ON's Jason Scagell. "Demand for the supply of key components such as turbines, offshore cabling and foundations is so high at the moment that it's very difficult to make projects cost effective." The construction tender process is due to be reactivated in the final quarter of 2006.