wind

UK Government secures 8.4 GW of offshore wind in Contracts for Difference Round 7 (AR7)

The UK Government has announced what it describes as a ‘record breaking’ result from its latest renewables energy auction, moving on from the previous, Conservative, government’s failed Contracts for Difference (CfD) Auction Round 5, which failed to deliver a single offshore wind project.
Courtesy of NREL.
Courtesy of NREL.

The Government described the result as “a major vote of confidence in the UK’s new era of energy sovereignty and abundance.” 

Contracts for Difference AR7 has secured 8.4 GW of offshore wind which will generate enough clean electricity to power the equivalent of 12 million homes and put the country back on track to achieve its clean power by 2030 target.

AR7 has shown that, at £90.91 per megawatt hour on average, UK offshore wind infrastructure is now 40 percent cheaper to build and operate than new gas (£147 per megawatt hour for a new gas fired power station).

The auction will unlock around £22 billion in private investment, supporting around 7,000 jobs, particularly in the country’s industrial heartlands. It has delivered projects in every part of the UK, including fixed offshore wind projects at Dogger Bank South off the coast of Yorkshire and Norfolk Vanguard off East Anglia. These are two of the largest offshore wind farms in the world. Berwick Bank in the North Sea is the first new Scottish project since 2022 and the largest planned offshore wind project in the world, while Awel Y Môr is the first Welsh project to win a contract in more than a decade.

The results also show major progress in the UK’s efforts to lead the world in the emerging technology of floating offshore wind, with winning projects including Erebus, in the Celtic Sea, and Pentland in Scotland, backed by pioneering investment from Great British Energy and the National Wealth Fund. 

Electricity demand in Britain is expected to more than double by 2050. Offshore wind, alongside solar and onshore wind will be drivers for growth and prosperity in local communities to help meet that demand. They will also help to reduce UK exposure to volatile global fossil fuel markets, which have contributed to major recessions since the 1970s and in 2025 sent energy prices spiking to over 15 percent within a week due to price shocks after global instability in the Middle East.

“With these results, Britain is taking back control of our energy sovereignty” said Energy Secretary, Ed Miliband. “This is a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators. It is a monumental step towards clean power by 2030 and the price secured in this auction is 40 percent lower than the alternative cost of building and operating a new gas plant.”

Independent research conducted in 2024 by the Energy & Climate Intelligence Unit analysis confirms that renewables can drive down electricity prices, already having reduced wholesale electricity prices by up to a quarter - or around £25/MWh.

“These are good projects which will add significantly more wind to the grid in sensible locations” added Greg Jackson, Founder and CEO of Octopus Energy. “To see electricity bills fall, we now need to use our system more efficiently. We need to urgently reassess all infrastructure plans and assumptions, cancel unnecessary projects, and reform the electricity market to reduce wasted wind and avoid wasteful expenditure on unnecessary new infrastructure.”

For additional information:

Department for Energy Security & Net Zero

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