Huge Wind Farm in North Sea Halted because of cost

[Social Media]

 

Turbulent Winds for UK’s Green Goals as Ørsted Halts Major Offshore Project

 

The UK’s transition to clean energy has suffered a serious blow as Danish energy giant Ørsted announced it is halting development of its flagship offshore wind farm, Hornsea 4. The project, once hailed as a cornerstone of Britain’s strategy to decarbonise its electricity grid, was expected to generate 2.4 gigawatts of power—enough to supply 2.6 million homes. But rising costs, increased risk, and tough financial conditions have brought it to a standstill.

 

The decision deals a major setback to Energy Secretary Ed Miliband’s ambitions to achieve net zero by 2050, particularly after he approved the project last autumn as part of the government’s broader clean energy agenda. The wind farm, planned to be built off the east coast of England, was to consist of 180 large turbines. However, Ørsted now says the challenges involved in delivering the project on time and within budget have become too great.

 

“After careful consideration, we’ve decided to discontinue the development of our Hornsea 4 project in its current form, well ahead of the planned FID [final investment decision] later this year,” said Rasmus Errboe, chief executive of Ørsted. He pointed to “several adverse developments” since the project won a government subsidy contract in September 2024, including rising supply chain costs, increasing interest rates, and higher “execution risk” in both construction and operation.

 

These pressures have strained the viability of Contracts for Difference, the government’s main subsidy mechanism for renewable energy, under which developers are guaranteed a fixed price for electricity over a long-term period. Wind farm operators argue that with costs soaring, the current terms make projects unfeasible.

 

Dan Slater, an analyst at Zeus Capital, commented: “This is a direct consequence of the cost increases we have seen in the offshore wind industry, and is a signal from the sector that the UK is likely to have to pay yet higher guaranteed electricity prices if the country wants to continue increasing the volume of new renewables in its energy mix. This also highlights how challenging the government’s current renewable power target is likely to prove, and how expensive it could be to achieve.”

 

Mr Errboe emphasized that the deteriorating economic and logistical environment had “increased the execution risk and deteriorated the value creation of the project. Therefore, Ørsted has taken the decision to stop further spend on the project at this time and terminate the project’s supply chain contracts.” Despite the setback, he left the door open to revisiting Hornsea 4 in the future, noting the company still retains seabed rights, grid access agreements, and development consent.

 

The announcement has sparked political controversy, with critics of the government’s green strategy seizing on the news as evidence of flawed policymaking. Andrew Bowie, acting shadow energy secretary, said: “Once again, the full cost of Labour’s net zero madness is on stark display. We have been consistently warning this Government that their mad dash to net zero is simply not sustainable – and would leave investment and industry at risk – but Keir Starmer and Ed Miliband have buried their heads in the sand, even as another key infrastructure project has pulled the plug.”

 

Environmental advocates, however, argue the solution lies in greater investment and policy support. “Post-covid supply chain breakdowns have also made everything much harder to build, on time or on budget,” said Mel Evans of Greenpeace. “This is why the Government must double down on its commitment to clean power and invest heavily in domestic wind manufacturing.”

 

Responding to the announcement, a spokesperson for the Department of Energy Security and Net Zero stated: “We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Ørsted to get Hornsea 4 back on track. We have a strong pipeline of projects to deliver clean power by 2030 and our mission-led approach ensures we can steer our way through global pressures and individual commercial decisions to reach our targets. Through our mission we will deliver an energy system that brings energy bills down for good and bolsters Britain’s energy security as part of our Plan for Change.”

 

As the government balances competing pressures of cost, risk, and urgency, the future of Hornsea 4 remains uncertain—casting doubt on the UK’s ability to meet its clean energy targets on schedule.

 

  Adpated by ASEAN Now from The Telegraph  2025-05-09

 

 

[Gsxrnz]

It's a bummer when reality gets in the way of your cultist religious ideology. 

[impulse]

3 hours ago, Social Media said:

Responding to the announcement, a spokesperson for the Department of Energy Security and Net Zero stated: “We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Ørsted to get Hornsea 4 back on track.

 

Translation:  Ørsted wanted a higher guaranteed price for their electricity and we're going to cave.  Everyone that wants to stay warm in the winter will just have to suck it up, have less fun, and eat less to pay for it.

 

[johng]

Good ! enough with this crap...UK has plenty of North Sea oil, gas and loads of coal   energy should be cheap , abundant and reliable.

The insane plan to force less consumption by driving the price sky high supposedly to save the planet is only crippling the ordinary citizen..

The wealthy continue with their private planes,yachts,mansion houses and countries like China India and Russia carry on as normal.

 

Also the ludicrous planed  experiments to  "dim" the sun

doesn't really complement solar  power production ..does it ?

[JonnyF]

Another net zero failure from the Doomsday cult. 😄

[bendejo]

 

 

 

Hey, isn't he the guy from Wallace and Gromit? 

 

 

[johng]

2 hours ago, impulse said:

Everyone that wants to stay warm in the winter will just have to suck it up, have less fun, and eat less to pay for it.

 

Under these insane WEF  plans  you will own nothing and be happy  

also eat ze bugs !

[JonnyF]

23 minutes ago, bendejo said:

 

 

 

Hey, isn't he the guy from Wallace and Gromit? 

 

 

 

No, the guy from Wallace and Gromit was made of clay, and hence had more of a backbone than Miliband.

[impulse]

20 minutes ago, johng said:

 

Under these insane WEF  plans  you will own nothing and be happy  

also eat ze bugs !

 

What I took from the article is that they're going to negotiate a higher price for the power and resume the project.  Possibly with more taxpayer subsidies on the front end.