Ørsted approves 2.9 GW Hornsea 3, world's largest offshore wind farm

Ørsted reached a final investment decision on Hornsea 3, a 2.9 GW offshore wind farm off the Yorkshire coast set for completion by end-2027 and powering over 3.3 million homes. The project underscores the scale economics of offshore wind, a reference point for India's emerging offshore wind ambitions.

Ørsted reached a final investment decision on Hornsea 3, a 2.9 GW offshore wind farm 160 km off the Yorkshire coast, slated for completion by end-2027 and capable of powering over 3.3 million homes. It is Ørsted's third project in the Hornsea zone after Hornsea 1 (1.2 GW) and Hornsea 2 (1.3 GW), together creating the world's largest offshore wind zone exceeding 5 GW. Hornsea 3 secured a Contract for Difference in July 2022 at a GBP 37.35 per MWh strike price, with a 14 MW turbine agreement with Siemens Gamesa.

The decision most directly affects the UK's renewable energy and offshore wind supply chain, supporting up to 5,000 construction jobs and 1,200 permanent operational positions, with supplier contracts including a milestone deal with SeAH Wind. Ørsted operates 12 offshore wind farms in the UK, leveraging political backing and growth objectives. The project's risk-reward profile benefits from an established supply chain and synergies with Hornsea 1 and 2, delivering lower operating costs through economies of scale, relevant to offshore developers benchmarking large-project economics.

Offshore wind developers and policymakers should monitor the financing and contracting model, where a 15-year inflation-indexed Contract for Difference at GBP 37.35 per MWh underpins a stable income before the project receives market prices or enters new PPAs. Indian stakeholders developing offshore wind policy can study the CfD strike-price mechanism and supply-chain synergies. Stakeholders should track Hornsea 3's path to end-2027 completion, Ørsted's plans to divest transmission assets per UK rules, and the follow-on 2.6 GW Hornsea 4 project.

Key figure — Capacity: 2.9 GW powering over 3.3 million homes