Ørsted, the world’s largest offshore wind developer, has pulled the plug on its massive Hornsea 4 wind farm project in the North Sea, citing rising costs and economic pressures. The Danish firm had won a UK government contract for the 2.4GW project just last year, which was set to include 180 turbines and deliver power to millions.

CEO Rasmus Errboe said the decision was driven by “adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks [that] have eroded the value creation.”

The cancellation comes with a heavy financial hit – contract breakaway costs are estimated between £399 million and £513 million.

The news follows a similar move last year by Swedish energy giant Vattenfall, which abandoned its 1.4GW Norfolk Boreas project, raising fresh doubts over the UK’s ambitious green energy goals.

The Department for Energy Security and Net Zero (DESNZ) said it would “work with Ørsted to get Hornsea 4 back on track” and insisted the UK still has “a strong pipeline of projects to deliver clean power by 2030.”

But industry insiders are raising concerns. A recent report from the National Energy System Operator highlighted the scale of what’s needed to meet Labour’s Clean Power by 2030 plan — including tripling offshore wind capacity, tripling solar power, and doubling onshore wind — targets some now fear are slipping out of reach.

Commenting on the broader challenges of the green transition, Sky’s Ed Conway noted: “The shift from fossil fuel energy to low-carbon energy has unequivocally pushed bills up. How could it not?” He added that the burden of green subsidies and charges is partly why “Britain is deindustrialising faster than every other developed economy.”

As cracks appear in the UK’s green energy rollout, pressure is mounting on ministers to deliver results — fast.