Some have said the 121 turbines, which would have provided power for around 700,000 homes, would have a serious effect on both the natural environment and the local economy and that is would be too close to protected coasts.
It was planned that the wind turbines would be located just 10.9 miles from The Needles.
The Department of Energy and Climate Change has refused permission for the project, the first time the Government department have done so for an offshore development.
RenewableUK’s Chief Executive, Maria McCaffery, said:
“It’s deeply disappointing that Navitus Bay has been refused consent.
“This is a missed opportunity as it means we’re failing to capitalise on the UK’s superb offshore wind resource and the economic benefits it brings.
“Years of hard work and significant investment went into developing this project which could have added £1.6 billion to the economy of the region and created up to 1,700 jobs – it’s most unfortunate that that has now been lost.
“The offshore wind industry is still determined to deliver the substantial pipeline of projects in UK waters which includes more than 5 gigawatts of operational capacity and over 13GW with planning permission.
“We’re making good progress in driving down costs while the prices of imported conventional fuels remain volatile. We’re also bringing real economic benefits with 13,000 jobs and inward investment of over £1billion last year.”