EuroWire, LONDON: Great Britain has awarded contracts for a record 8.4 gigawatts of new offshore wind capacity in its latest renewables auction, a volume the government said is enough electricity to power the equivalent of more than 12 million homes. The results came from the Contracts for Difference allocation round known as AR7, which sets long-term price agreements for low-carbon power and is designed to attract private investment while limiting exposure to volatile wholesale prices.
The Department for Energy Security and Net Zero said the auction outcome would unlock about £22 billion in private investment and support around 7,000 jobs, with projects spread across England, Scotland and Wales. Officials described the procurement as the largest single offshore wind award in British and European history, coming as the UK targets a clean power system by 2030 and seeks to cut reliance on imported fossil fuels for electricity generation.
Offshore wind projects in England and Wales cleared at a strike price of £91.20 per megawatt-hour in 2024 prices, while the Scottish offshore wind clearing price was £89.49 per megawatt-hour. Two floating offshore wind projects cleared at £216.49 per megawatt-hour. The government said the blended average for fixed-bottom offshore wind was £90.91 per megawatt-hour, and cited analysis comparing that with an estimated £147 per megawatt-hour cost for building and operating a new gas-fired power station.
Record capacity secured under contracts for difference
The successful fixed-bottom portfolio totals 8,245 megawatts, with 6,090 megawatts in England, 1,380 megawatts in Scotland and 775 megawatts in Wales. The projects include Dogger Bank South East and Dogger Bank South West, each listed at 1,500 megawatts, and the Awel y Mor offshore wind farm in Wales at 775 megawatts. Scotland’s award includes Berwick Bank Phase B at 1,380 megawatts, which the government said is the first new Scottish offshore wind project to secure a contract since 2022.
The AR7 results also include two floating offshore wind schemes totaling 192.5 megawatts: the Erebus project in Wales at 100 megawatts and the Pentland floating offshore wind farm in Scotland at 92.5 megawatts. The government has positioned floating wind as an emerging technology with potential to open new areas for development, particularly in deeper waters where fixed foundations are less suitable.
Project timelines and regional breakdown
Delivery years for the awarded offshore wind contracts span the 2028/29 to 2030/31 periods, reflecting phased construction and commissioning schedules. The published results list multiple contract “units” for the Norfolk Vanguard East and Norfolk Vanguard West developments off East Anglia, each split into several phases, alongside the Dogger Bank South and other awards. Under the Contracts for Difference model, projects receive price certainty over the contract term, with payments flowing depending on the difference between the strike price and market prices.
The auction outcome follows a period of volatility for offshore wind procurement, after a previous round failed to secure any offshore wind contracts. The government said AR7 demonstrates renewed competition and scale in the sector, with contracts awarded across Great Britain and with specific capacity allocations by nation. Industry groups have said the results will now shift focus to delivery, including supply chain capacity, ports and grid connections needed to bring projects online within the stated timeframes.