The UK Department for Energy Security and Net Zero (DESNZ) has awarded Ørsted contracts for difference (CfD) for a 1,080 MW share of the Hornsea 3 Offshore Wind Farm and a 2,400 MW CfD for Hornsea 4.
The CfDs were granted at inflation-indexed strike prices of £54.23 per MWh for the Hornsea 3 share and £58.87 per MWh for Hornsea 4, based on 2012 prices.
The CfD for Hornsea 3 is a two-way agreement with a term of up to 15 years, commencing after the wind farm is commissioned. The strike price will be adjusted for inflation up to and throughout the CfD period. The nominal starting price per MWh will be set based on the strike price plus cumulative inflation from 2012 until the CfD takes effect. After the CfD period ends, Hornsea 3 will receive the market price for electricity or negotiate new power purchase agreements.
Ørsted will construct both Hornsea 3 and Hornsea 4, including the transmission assets (offshore and onshore substations and export cables). In accordance with UK regulations, Ørsted will divest the transmission assets to a new owner once the wind farms are fully commissioned.
Hornsea 3 will have a capacity of 2,955 MW, while Ørsted aims to take the final investment decision (FID) on Hornsea 4 within the next 18 months, with a target commissioning date before the end of 2030.
