Orsted says it is focused on strengthening its position in the renewable energy market while adopting a disciplined approach to capital allocation.
In 2024, Orsted saw a 16 percent increase in its installed renewable capacity, reaching 18.2 GW. This growth was primarily driven by the commissioning of the Greater Changhua 1 and 2a offshore wind farms and the Eleven Mile Solar Center, Mockingbird, and Sparta Solar onshore assets.
Despite reducing its growth ambition toward 2030, Orsted remains committed to its renewable energy goals by adjusting its cost base and organizational structure to align with its new strategy. To ensure continued progress, Orsted has reduced its investment program by approximately 25 percent, aiming for an investment range of DKK 210-230 billion for the period from 2024 to 2030.
The focus will be on the execution of its existing construction portfolio, and the company expects to double its offshore wind capacity from 9.9 GW to 18.0 GW by 2027, with total renewable capacity reaching 27.3 GW. By 2026, Orsted is targeting an EBITDA of DKK 29-33 billion and a return on capital employed (ROCE) of 13 percent on average during the 2024-2030 period.
Throughout 2024, Orsted advanced eight projects with a total capacity of 1.8 GW to final investment decision (FID), spanning offshore and onshore wind, solar, and storage. Key additions to the portfolio include Sunrise Wind, an offshore wind project in New York, and Baltica 2, a 1.5 GW wind farm, which was approved in early 2025. In onshore business, Orsted took FID on Badger Wind and a storage project adjacent to the Old 300 solar farm. By the end of 2024, Orsted had 6.9 GW of offshore capacity under construction, along with 0.8 GW of onshore capacity.
In the UK, Orsted reached a significant milestone by securing 3.5 GW of offshore wind capacity through the award of Hornsea 3 and Hornsea 4 projects, with Hornsea 3 set to become the world’s largest offshore wind farm at 3 GW. The company has faced challenges with its US offshore wind projects, Revolution Wind and Sunrise Wind, particularly concerning supply chain and construction delays. However, Orsted continues to manage these challenges and de-risk its portfolio.
The company’s divestment program is progressing well, with several transactions completed in 2024, generating DKK 22 billion towards its target of DKK 70-80 billion by 2026. Notable divestments include the sale of 12.45 percent of four operational UK offshore wind farms to Brookfield, 50 percent of the Greater Changhua 4 wind farm in Taiwan to Cathay Life Insurance, and partial sales of several US wind farms and solar projects to various partners.
Orsted is also committed to reducing its greenhouse gas emissions intensity. In 2025, it expects a reduction in its scope 1 and 2 emissions intensity, achieving the science-based target of 10 g CO2e/kWh. This is primarily due to an increase in renewable generation and the cessation of coal-based heat and power generation in 2024. The company expects a further reduction in scope 1-3 emissions intensity as fewer renewable assets reach commercial operations in 2025 compared to 2024, coupled with higher renewable energy generation.
Baburajan Kizhakedath