Orsted canceled Hornsea four wind farm – and kills Miliband's “Clear Energy 2030” agenda useless – watts up?

From the daily skeptic

By David Turver

Today Orsted has announced that it was pulled out of its flagship 2.4 GW Hornsea Project Four Offshore Windpark, which was only granted a contract in AR6 last year. It said:

After careful consideration, we decided to stop the development of our Hornsea 4 project in its current form, far before the planned FID, later this year in its current form. The combination of increased supply chain costs, higher interest rates and increased risk of execution has worsened the expected added value of the project.

Orsted's explanation only comes for a day after Ed Miliband announced the results of his consultation on differential contracts (CFDS) for the allocation round 7 (AR7) and has committed to making changes to achieve more offshore wind capacity. The announcement by DESNZ states that 31 GW offshore wind capacity was built or contractually contracted and at least 12 W offshore wind capacity in AR7, AR8 and AR9 must be secured in order to reach their 43-50 GW target by 2030 to 2030. Now 2.4 GW of this 31 GW have been removed from the pipeline.

Hornsea 4 formed most of the new offshore wind capacity of 3.4 GW awarded in AR6. Removing is a big blow for the plan for clean power 2030 from Miliband. In fact, the NESO goal for offshore wind in 2030 is 50.7 GW, so that almost 20 GW from the new rounds of allocation were still required. Now 22.1GW is required. In addition, Miliband, as we discussed last month, remains his goal.

Figure 1 – Offshore -Wind installed capacity and trend against CP2030 Plan (MW)

Miliband has agreed to publish the budget for AR7 much later than normal, and gives itself the powers of seeing anonymized offers about prices and capacities before announcing the budget. It is interesting that he did not give an announcement on the proposal to increase the contract time of 15 to 20 years, and there is still no news about the administrative strings.

However, the Orsted news today means that he cannot rely on projects to be built up, even if he has honored contracts. And of course this message comes after Norfolk Boreas was canceled last year after a contract in AR4 in 2022. In addition, parts of other AR4 projects were killed at higher prices in AR6 such as Moray West and Inch Cape. The Hornsea Project three from Orsted was even built for more capacities.

If we cannot rely on the delivered capacity or the price, the entire allocation method has become a farce. It is time for Miliband to explain that his plan for clean power is 2030. It is no longer to have stopped, it has expired and went to its manufacturer.

David Turver writes the self -esteem -sub -stack, in which this article appeared for the first time.

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