The UK government has announced a £1.08 billion budget for offshore wind projects in the upcoming seventh round of its Contracts for Difference (CfD) scheme, with funding split between fixed-bottom and floating wind technologies.
The Department for Energy Security and Net Zero (DESNZ) said £900 million has been allocated to fixed-bottom offshore wind projects competing in Pot 3, with delivery years scheduled between 2028 and 2031. A further £180 million has been assigned to floating wind projects under Pot 4, covering delivery years 2028–29 and 2029–30.
Both funding levels are expressed in 2024 prices, and the government confirmed there will be no overall capacity cap for the auction. However, separate 30-gigawatt (GW) maxima will apply to Scottish and non-Scottish fixed-bottom projects in Pot 3. DESNZ described the maxima as “purely technical,” noting they are not linked to government targets or expected auction capacity.
“The maxima will allow for separate clearing prices, while maintaining the merit order, and help ensure competitive tension between technology groupings in the pot,” the department said in a statement.
The government has set administrative strike prices (ASPs) of £113 per megawatt-hour (MWh) for fixed-bottom offshore wind and £271/MWh for floating wind, both in 2024 prices.
The sealed bidding window for the AR7 auction will open on Nov. 11 and close on Nov. 17, with results expected on Jan. 14, 2025, according to the official timetable.
A separate auction stream, AR7a, will be held for non-offshore wind technologies, though budget and bidding window details have not yet been confirmed.
UK energy minister Michael Shanks said the new auction round would strengthen the country’s energy security and support its clean energy goals.
“This auction is another step towards delivering the clean power this country needs to end our reliance on volatile global gas prices, ensuring our energy security and bringing down bills for good,” Shanks said. “Our competitive new auction process will allow us to buy the right amount of clean power at the right price on behalf of the British people, so we can take back control of our energy.”
The CfD scheme remains the UK government’s main mechanism for supporting low-carbon electricity generation, providing developers with price stability while promoting competition among renewable energy projects.
