Danish energy giant Ørsted has cancelled the planned Hornsea 4 offshore wind farm, a project once seen as central to the UK’s green energy future. The announcement came Wednesday, marking a blow to the UK’s target of expanding offshore wind capacity fourfold by 2030. Ørsted had aimed to install 180 turbines off the Yorkshire coast, generating up to 2.4 gigawatts—enough to power one million homes.
The decision follows rising costs, global supply chain delays, and economic risks. Ørsted’s Executive Vice President, Rasmus Errboe, said the company could no longer justify the investment under current conditions. “The financial landscape has shifted dramatically,” he explained.
Surging Costs Impact Wind Power Projects Worldwide
Ørsted’s decision mirrors global trends. The company has already cancelled two major wind projects in the U.S. and delayed another. In 2023, Swedish energy firm Vattenfall also halted its Norfolk Boreas wind farm, citing similar cost increases.
The entire wind energy sector is feeling the pressure. Inflation, fluctuating interest rates, and disrupted supply chains have all raised the cost of doing business. Projects once seen as stable are now facing unpredictable returns.
“Planning for the long term has become harder,” said Jane Cooper from RenewableUK. “We need financial systems and rules that reflect today’s economic reality.”
Renewable Energy Groups Call for Immediate Action
Industry leaders are urging the UK government to act fast. With the next renewable energy auction approaching, many fear that more cancellations could follow if support is not increased.
Dhara Vyas, Chief Executive at Energy UK, called the news “deeply worrying.” She said government support is now more important than ever. “We need changes in how these auctions work. The current system doesn’t reflect the real costs companies face.”
Cooper agreed. She also criticized the proposed “zonal pricing” reforms, which could create unequal investment conditions depending on project location. “We risk making some regions less attractive, just when we need every part of the country involved.”
UK Government Says Clean Energy Goals Remain on Track
In response, a UK government spokesperson said they remain committed to clean energy growth. Talks with Ørsted are ongoing in hopes of bringing Hornsea 4 back on track.
“The UK is still a global leader in offshore wind,” the spokesperson added. “We are adjusting our strategies to ensure long-term success.”
However, some experts question how realistic the government’s goals are without major changes in funding models, auction rules, and planning support.
Ørsted Focuses on Long-Term Offshore Wind Goals
Despite short-term losses, Ørsted says it still believes in offshore wind. The company is betting on growing global demand for clean and affordable energy over the next decade.
But Ørsted is under pressure. It began a restructuring program in 2024, paused dividends through 2025, and has seen its market value fall by 80% since 2021. “We are adapting to protect our future,” said Errboe. “This is not the end of offshore wind. It’s a call for smarter policies.”
A Turning Point for UK Renewable Energy
The cancellation of Hornsea 4 could be a turning point for UK energy policy. It highlights the need for flexible and realistic support for green technology. Investors and developers say they need certainty to keep building large-scale renewable projects.
As the UK races to meet its 2030 climate goals, energy experts warn that setbacks like this cannot become the norm. Without urgent policy reforms, many fear that progress on clean power could stall.