Ørsted Slims Down Investment Programme, Discontinues Previous Renewable Energy Capacity Target

Ørsted will reduce the investment programme the company planned to implement by 2030 by around 25 per cent, saying the reduction was in line with its commitment to ensure a capital structure that can support a solid investment grade credit rating. The slimmed-down strategic investment programme will not affect Ørsted’s construction portfolio which totals 9 GW in generation capacity, the company said on 6 February.

“We’ll reduce our investment programme towards 2030 through a stricter, more value-focused approach to capital allocation. We do this to ensure a stronger balance sheet, supporting a solid investment grade rating, and to ensure that we only invest our capital in the most financially attractive opportunities”, said Rasmus Errboe, Group President and CEO of Ørsted.

“Our number one priority throughout the next three years will be to deliver on our committed 8.4 GW offshore wind construction programme, which will almost double our installed offshore wind capacity. The market remains challenging, but delivering on this programme will solidify our position as the undisputed global leader in offshore wind.”

The global offshore wind major said that, despite delivering full-year results in line with expectations and strategic progress, Ørsted experienced challenges, especially related to the US offshore wind portfolio, which had led to further pressure on its credit metric. Together with the wider renewable industry challenges, this has led the company to reduce its investment programme towards 2030, Ørsted said.

YOU MIGHT ALSO LIKE

• Revolution Wind Commissioning Pushed Back to 2026
• New Jersey Grants Ørsted’s Motions to Vacate Orders for Cancelled Ocean Wind Projects
• Ørsted Books EUR 1.6 Billion Impairment from Increased Costs, Sunrise Wind Delays in US

“We will adopt a focused approach to capital allocation by prioritising geographies and technologies with the most attractive value-creation potential. Additionally, we will continue our company-wide efficiency programme to further drive cost efficiency beyond the DKK 1 billion savings plan implemented during 2024. As we do not expect to construct at the same pace as our current build-out programme, we will also be rightsizing our cost base and organisation continuously”, Ørsted said in a press release on 6 February.

With the construction portfolio of around 9 GW that the company has committed to execute, Ørsted’s installed offshore wind capacity is expected to increase from 9.9 GW to 18 GW and the company’s total installed renewable energy capacity is planned to grow from 18 GW to 27.3 GW by the end of 2027.

Ørsted has now discontinued the previous ambition for an installed renewable capacity of 35-38 GW by 2030 and the targeted EBITDA (excluding new partnerships) of approximately DKK 39-43 billion (approximately EUR 5.2-5.8 billion) in 2030.

The previous target for the company to reach 35-38 GW of installed renewable capacity by 2030 was set at the beginning of last year and was also a reduction from the earlier target of approximately 50 GW as Ørsted performed a substantial revision of its plans which also led to downsizing its workforce, exiting several markets and planning a “leaner development” within floating offshore wind and Power-to-X.