Energy company Orsted has abandoned plans to develop the Hornsea 4 offshore wind farm off the coast of East Yorkshire, which was due to become one of the biggest wind farms in the world.
The energy company has stated that the project doesn't make economic sense any more. This is despite the fact that Orsted had a 15-year contract with the Government that meant a guaranteed sale price. Sadly, the UK's offshore wind sector has seen increasing prices in recent years due to high inflation and supply chain constraints.
Orsted follows Vattenfall, which pulled out of the development of an offshore wind farm off the coast of Norfolk in 2023. This, too, was because of costs. However, that project was eventually sold to a German company and it is expected that it will go through in the end.
Labour has an ambition to increase the power generated from renewables to 95% by 2030. As a result, it is estimated that offshore wind capacity will have to increase threefold in order to help meet that target. In fact, Labour's manifesto promised to "deliver our clean power mission, Labour will work with the private sector to double onshore wind, triple solar power, and quadruple offshore wind by 2030."
In addition, large upgrades to the electricity grid are needed. And with developers abandoning large projects, as well as some hostility from communities against major energy infrastructure development near to their homes, some are wondering whether the target can be met, even though renewable provision is growing.
Energy Secretary Ed Miliband admits that the 2030 plan is ambitious, but said it is also essential. As a result, it has said it will work with Orsted to see if it can get the Hornsea 4 development back on track.
