A prominent energy project in the UK is reportedly considering the option of engaging in private agreements to secure its future.
This potential shift towards private power agreements is driven by mounting concerns regarding the project’s escalating financial costs.
The Telegraph reported that the developer Ørsted, known as the world’s largest offshore wind developer, is currently exploring the option of relinquishing state subsidies for one of the UK’s significant offshore wind farm projects, Hornsea 3.
According to a company spokesperson quoted in the report, there is a possibility that they might explore selling 25% of the project’s electricity through a merchant model, which would involve no government subsidies but could yield higher profits.
This corresponds to approximately 700MW of the wind farm’s intended 2.8GW capacity, enough to provide power to approximately three million households.
Energy Live News has contacted the Department for Energy Security and Net Zero for comment.
