United Kingdom – A contract for difference has been given to Ørsted for the Hornsea 3 offshore wind farm by the UK Department for Business, Energy, and Industrial Strategy (BEIS).

Hornsea 3 will be built by rsted, including transmission equipment (offshore and onshore substations and export cables). Following UK regulations, Ørsted will sell the transmission assets to a new owner once the wind farm is fully operational. Ørsted anticipates making a final investment decision on Hornsea 3 in less than a year, possibly by the end of 2022.

The Hornsea 3 two-way contract for difference (CfD) is expected to last up to 15 years, beginning with the wind farm’s anticipated 2027 commissioning. The strike price is adjusted for inflation prior to and during the CfD period. Based on the strike price and accumulated inflation from 2012 until the CfD begins, the nominal starting price per MWh will be calculated. Hornsea 3 will either sign new power purchase agreements or receive the market price for electricity after the CfD expires.

Advancing offshore wind

With a capacity of 2,852 MW, Hornsea 3 will be able to significantly contribute to the UK Government’s goal of having 50 GW of offshore wind in operation by 2030 as part of the British Energy Security Strategy. This electricity will be affordable, clean, and renewable and will be used to power 3.2 million UK homes.

The installation of Hornsea 3 will significantly advance Ørsted’s goal of installing 30 GW of offshore wind worldwide by 2030. Currently, Ørsted has approximately 7.5 GW of offshore wind capacity operating, approximately 3.5 GW being built, and another almost 11 GW of awarded capacity being developed, including Hornsea 3.

The wind farm, called Hornsea 3, will be 160 kilometers from the coast of Yorkshire, and Ørsted plans to put it into operation in 2027. When Hornsea 3 is operational, Ørsted’s Hornsea zone, which consists of Hornsea 1, 2, and 3, will have a combined capacity of more than 5 GW, making it the largest offshore wind zone in the world and providing power for about 5 million UK homes.

The Hornsea 4 project by Ørsted, which has a potential capacity of about 2.6 GW, will also be a part of the Hornsea Zone. A decision on Hornsea 4 is anticipated to be made in the first quarter of 2023.