PLANS for new wind farm off the Lincolnshire Coast are still being considered, according to energy company Centrica.

Rising costs have meant that since plans for the 250MW wind farm were given the go ahead in October, the company has been renewing the finances of the project before making a final investment decision.

Since the construction of the Lynn and Inner Dowsing wind farms, the cost of turbines, engineering and steel have all risen significantly and this combined with Sterling depreciation, a fall in carbon prices and increased costs of credit finance have meant that no work has yet begun.

Head of media relations Alan McLaughlin told the Target: "It is true that we have not yet made a decision to proceed with the Lincs wind arm.

"We are closely examining the costs, which have risen significantly, but our hope is that the development will proceed. Preliminary work is still progressing."

He added: "We have never given a start date for work but we have recently confirmed that we are now working with our chosen contractors towards starting in 2011-12."