Orsted's 2019 offshore wind output up 20% to 12 TWh

London — Danish energy company Orsted's 2019 offshore wind generation increase 20% to 12 TWh year on year as the world's largest offshore wind farm at Hornsea 1 in the UK (1.218 GW) ramped up, in addition to new capacity at Borkum Riffgrund 2 and Walney Extension, it said in its annual results statement Thursday.

Curtailments and various operational issues had a "larger adverse impact on generation than in a normal year," while wind speeds were slightly above those in 2018, Orsted said.

Work on Hornsea 2 (1.386 GW) is progressing to plan, with export cables being installed along the onshore route. Commissioning is expected in the first half of 2022.

The application for Hornsea 3 (up to 2.4 GW) is being processed, with a consent decision expected in the first half of 2020.

In Continental Europe, Orsted continues to build the Borssele 1 & 2 wind farm cluster in Dutch waters (752 MW), with foundations and array cables currently going in. Commissioning is expected at the end of the fourth quarter of 2020.

In Poland, Orsted is discussing taking a 50% stake in two PGE projects in the Baltic Sea with total capacity of up to 2.5 GW. The projects are expected to start construction by 2026 and 2030 respectively, the company said.

In its thermal heat and power business, Orsted said it would close its last remaining coal-fired plant, the Esbjerg power station, in early 2023, having failed to agree "a joint solution for a bioconversion project with our heat customers."

With Asnaes reaching 100% green generation in December, six of seven Danish cogeneration plants have now been converted to bioenergy, Orsted said. The company aims to be carbon neutral by 2025.

Power generation in this segment was down 31% on year, heat generation down 6% "driven by warmer weather and less favorable market conditions," it said.

While average Danish power prices were down 13% on year, green spark spreads (wholesale power price minus the cost of gas and carbon) turned positive as gas prices fell, Orsted data showed.