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What led to the cancellation of Hornsea 4?
Orsted canceled the Hornsea 4 project primarily due to rising costs and financial risks associated with the project. Escalating supply chain issues and high interest rates made the project economically unviable, prompting Orsted to halt its plans.
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What does this mean for the UK's renewable energy goals?
The cancellation of Hornsea 4 is a significant setback for the UK's renewable energy ambitions, particularly the goal of achieving a 95% decarbonized power grid by 2030. The loss of 2.4GW of capacity raises concerns about the feasibility of meeting these targets.
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How are rising costs affecting the offshore wind sector?
Rising costs, driven by supply chain disruptions and increased interest rates, are creating financial challenges for many offshore wind projects. This trend threatens the viability of future projects and could hinder the overall growth of the offshore wind sector.
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What are the financial implications for Orsted?
Orsted's cancellation of the Hornsea 4 project could cost the company up to £513 million in break costs. This financial burden reflects the severe implications of halting such a significant project and highlights the risks involved in large-scale renewable energy investments.
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How does this affect Prime Minister Keir Starmer's plans?
The cancellation of Hornsea 4 poses a major setback for Prime Minister Keir Starmer's low-carbon future plans. With the loss of substantial capacity, the stakes for upcoming energy auctions have increased, complicating efforts to achieve the government's energy goals.