{"id":425167,"date":"2026-02-08T16:32:15","date_gmt":"2026-02-08T15:32:15","guid":{"rendered":"https:\/\/climatescience.press\/?p=425167"},"modified":"2026-02-08T17:45:24","modified_gmt":"2026-02-08T16:45:24","slug":"energy-giant-revives-wind-farm-after-milibands-1-8bn-subsidy-blitz","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=425167","title":{"rendered":"Energy giant revives wind farm after Miliband\u2019s \u00a31.8bn subsidy blitz"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

<\/p>\n\n\n\n

\u00d8rsted, the Danish energy company and world’s largest offshore wind developer, refers to a recent announcement to revive its Hornsea 4 project in the North Sea. <\/p>\n\n\n\n

This comes after UK Energy Secretary Ed Miliband (under the Labour government) rolled out a major subsidy package in January 2026 via the Contracts for Difference (CfD) scheme, aimed at accelerating offshore wind development to meet the UK’s 2030 clean power targets.<\/p>\n\n\n\n

Miliband’s “blitz” involves Allocation Round Seven (AR7) of CfD auctions, awarding contracts to six new offshore wind farms (including others beyond Hornsea 4). Key changes:<\/p>\n\n\n\n

\n

Strike Price: Developers are guaranteed a minimum of about \u00a395 per megawatt-hour (MWh) for generated power\u2014up from roughly \u00a385\/MWh in prior rounds. If wholesale market prices fall below this (which they often do, averaging around \u00a350-\u00a360\/MWh lately), the government covers the difference.<\/p>\n<\/blockquote>\n\n\n\n

\n

Contract Length: Extended from 15 to 20 years, providing longer-term revenue certainty.<\/p>\n\n\n\n

Total Cost: The Department for Energy Security and Net Zero estimates these subsidies could reach up to \u00a31.8 billion annually by 2032-33 as projects ramp up. Overall CfD spending on renewables is projected by the Office for Budget Responsibility to climb from \u00a32.3 billion currently to around \u00a36 billion by decade’s end.<\/p>\n\n\n\n

Funding Mechanism: Not direct taxpayer money, but via levies added to consumer and business energy bills. Critics argue this could add \u00a310-\u00a320 per household annually, though proponents say it avoids higher long-term fossil fuel volatility and supports energy security.<\/p>\n<\/blockquote>\n\n\n\n

\u00d8rsted cited rising construction costs, supply chain issues, and lower-than-expected wholesale prices as reasons for the initial cancellation. The higher subsidies address these, making the math work for investors. Miliband has framed it as essential for decarbonizing the grid by 2030, creating jobs (potentially thousands in supply chains), and reducing reliance on imported gas.<\/p>\n\n\n\n

____________________________________________________________________________________<\/p>\n\n\n

\n
\"A<\/figure>\n<\/div>\n\n\n

Orsted will resubmit plans for Hornsea 4, a project it cancelled last year because the grants on offer were too low<\/strong><\/p>\n\n\n\n

A Danish energy giant has revived plans for a massive North Sea wind farm after Ed Miliband promised billions more in subsidies. The Telegraph<\/a> has the story.<\/em><\/strong><\/p>\n\n\n\n

\u00d8rsted, the world\u2019s largest wind farm operator,<\/a> said it would resubmit plans for the Hornsea 4 wind farm off the east of England next year after Mr Miliband offered a much higher subsidy for the power generated.<\/p>\n\n\n\n

The group blew a hole in the Energy Secretary\u2019s net zero hopes last year by cancelling the project. It said government-backed grants<\/a> under the Contracts for Difference (CfD) scheme were too low.<\/p>\n\n\n\n

Mr Miliband last month announced plans to boost the annual subsidies on offer, promising them minimum average prices of \u00a395 per megawatt hour, which is about \u00a310 more than \u00d8rsted would have received under a prior deal.<\/p>\n\n\n\n

Another decision by Mr Miliband<\/a> means the contracts guaranteeing the payments, estimated by the energy department to cost up to \u00a31.8bn a year, were also extended from 15 years to 20 years.<\/p>\n\n\n\n

Hornsea 4 is a 180-turbine project off the coasts of Norfolk and Yorkshire. It would have a capacity of 2.4 gigawatts, among the largest ever built, generating enough power for 2.6 million homes on a windy day.<\/p>\n\n\n\n

\u00d8rsted\u2019s rethink will be welcomed by Mr Miliband. When he originally approved the project, he heralded it as a key step towards decarbonising\u00a0Britain\u2019s electricity grid by 2030<\/a>.<\/p>\n\n\n\n

At the time, the Government had guaranteed developers \u00a385 per megawatt hour as a minimum price for any power generated.<\/p>\n\n\n\n

Wholesale power is usually well below this price, so the Government makes up the difference, funding the costs via a levy on consumer and business bills.<\/p>\n\n\n\n

At the time it was widely predicted across the energy industry that the price would have to rise, or Mr Miliband\u2019s 2030 target would never be met.<\/p>\n\n\n\n

That belief prompted some developers to hold back schemes in the hope of getting extra subsidy \u2013 a view that has since proven to be correct.<\/p>\n\n\n\n

The Office for Budget Responsibility predicts that the cost of CfD contracts for renewable generators are set to rise from \u00a32.3bn to around \u00a36bn by the end of the decade once the cost of new wind farms is included. All such costs will be met via a levy on power bills.<\/p>\n\n\n\n

Read the full story here<\/a>.<\/em><\/strong><\/p>\n\n\n\n

<\/p>\n\n\n

\n
\"A<\/figure>\n<\/div>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00d8rsted, the Danish energy company and world’s largest offshore wind developer, refers to a recent announcement to revive its Hornsea 4 project in the North Sea. This comes after UK Energy Secretary Ed Miliband (under the Labour government) rolled out a major subsidy package in January 2026 via the Contracts for Difference (CfD) scheme, aimed at accelerating offshore wind development to meet the UK’s 2030 clean power targets.<\/p>\n","protected":false},"author":121246920,"featured_media":425182,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":true,"token":"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.sbm0YHsF1aCavtv0FduWJXrM1y32Ttx1fWNle7D4T14MQ"},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":{"0":"post-425167","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","9":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/AQOk3_UEEODnDKNuFlAUAJkaWl9VdV05X5lzVS0Cm7oIb156LLN-fG2n8aZGcE8D-uYCw-JZm-IzkxK-RTvpyZRRMz7GK6Q5moyXxEkJAv7c3V3IxlxaK_gF-jA912n4.jpeg?fit=1602%2C930&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1MBx","jetpack-related-posts":[{"id":378010,"url":"https:\/\/climatescience.press\/?p=378010","url_meta":{"origin":425167,"position":0},"title":"Miliband plots surge in wind farm subsidies to rescue net\u00a0zero","author":"uwe.roland.gross","date":"05\/12\/2025","format":false,"excerpt":"As we know, Orsted cancelled their massive Hornsea 4 offshore wind farm the other day. This has left Mad Miliband\u2019s 2030 Clean Power policy in tatters.","rel":"","context":"In \"Climate change\"","block_context":{"text":"Climate change","link":"https:\/\/climatescience.press\/?tag=climate-change"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":365399,"url":"https:\/\/climatescience.press\/?p=365399","url_meta":{"origin":425167,"position":1},"title":"Miliband\u2019s Net Zero Plans Torpedoed by UK\u2019s Top Offshore Wind Developer as \u00d8rsted Axes Major Projects","author":"uwe.roland.gross","date":"02\/08\/2025","format":false,"excerpt":"On Wednesday, \u00d8rsted, the\u00a0leading offshore wind\u00a0developer in the UK,\u00a0announced\u00a0it is cutting its investment plans out to 2030 by 25%.","rel":"","context":"In \"Ed Miliband\"","block_context":{"text":"Ed Miliband","link":"https:\/\/climatescience.press\/?tag=ed-miliband"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0Screenshot-2025-02-07-151031.jpeg?fit=1179%2C716&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":397882,"url":"https:\/\/climatescience.press\/?p=397882","url_meta":{"origin":425167,"position":2},"title":"Orsted Pull The Plug On\u00a0AR7","author":"uwe.roland.gross","date":"08\/26\/2025","format":false,"excerpt":"As we know, Orsted, Denmark\u2019s world leading offshore wind developer, pulled out of its Contract for Difference to build a giant 2400 MW Hornsea 4 wind farm in May. The contract had only been signed last year, with a guaranteed, index linked price on the table of \u00a384.97\/MWh. 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And with Vattenfall already opposed to joining future CfD auctions, there is now an enormous gap between Miliband\u2019s 2030 plans and reality.","rel":"","context":"In \"Energy Secretary Ed Miliband\"","block_context":{"text":"Energy Secretary Ed Miliband","link":"https:\/\/climatescience.press\/?tag=energy-secretary-ed-miliband"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0182bf52e27f8f25d283b019fd458f84e.jpeg?fit=1200%2C750&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0182bf52e27f8f25d283b019fd458f84e.jpeg?fit=1200%2C750&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0182bf52e27f8f25d283b019fd458f84e.jpeg?fit=1200%2C750&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0182bf52e27f8f25d283b019fd458f84e.jpeg?fit=1200%2C750&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0182bf52e27f8f25d283b019fd458f84e.jpeg?fit=1200%2C750&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":341560,"url":"https:\/\/climatescience.press\/?p=341560","url_meta":{"origin":425167,"position":4},"title":"AR6 Results","author":"uwe.roland.gross","date":"09\/05\/2024","format":false,"excerpt":"The price for new electricity from offshore wind has risen to \u00a382\/MWh in current prices, a significant 58% increase since the previous successful auction. Higher prices will lead directly to higher household bills and the results raise the already astronomical price tag of meeting Miliband\u2019s unrealistic target to decarbonise the\u2026","rel":"","context":"In \"Net zero\"","block_context":{"text":"Net zero","link":"https:\/\/climatescience.press\/?tag=net-zero"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0bd94b8df-0c27-47eb-8a48-57c0fb073ec5-1.jpg?fit=1200%2C778&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0bd94b8df-0c27-47eb-8a48-57c0fb073ec5-1.jpg?fit=1200%2C778&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0bd94b8df-0c27-47eb-8a48-57c0fb073ec5-1.jpg?fit=1200%2C778&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0bd94b8df-0c27-47eb-8a48-57c0fb073ec5-1.jpg?fit=1200%2C778&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0bd94b8df-0c27-47eb-8a48-57c0fb073ec5-1.jpg?fit=1200%2C778&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":365373,"url":"https:\/\/climatescience.press\/?p=365373","url_meta":{"origin":425167,"position":5},"title":"Orsted Likely to Cancel Hornsea\u00a0Four","author":"uwe.roland.gross","date":"02\/07\/2025","format":false,"excerpt":"Orsted, the Danish owned wind power company, has been in deep trouble for a while now, as the combination of rising costs, the end of cheap money and shrinking subsidies have wrecked profitability.","rel":"","context":"In \"\u00d8rsted\"","block_context":{"text":"\u00d8rsted","link":"https:\/\/climatescience.press\/?tag=orsted-2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/01_Hornsea-Project-Four.webp?fit=1024%2C538&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/01_Hornsea-Project-Four.webp?fit=1024%2C538&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/01_Hornsea-Project-Four.webp?fit=1024%2C538&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/01_Hornsea-Project-Four.webp?fit=1024%2C538&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/425167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=425167"}],"version-history":[{"count":15,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/425167\/revisions"}],"predecessor-version":[{"id":425185,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/425167\/revisions\/425185"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/425182"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=425167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=425167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=425167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}