Industry bodies have welcomed the UK government’s decision to award contracts for 8.4 gigawatts of offshore wind capacity in the latest Contracts for Difference (CfD) allocation round, describing the outcome as a boost for energy security and consumer costs.
RenewableUK said the results of Allocation Round 7 (AR7) exceeded the previous record of 7 GW set in the 2022 auction and would play a key role in reducing reliance on imported fossil fuels. The trade body estimates that the six fixed-bottom and two floating offshore wind projects awarded contracts could save billpayers around £1.7 billion a year compared with gas-fired generation, while supporting about 7,000 jobs.
“This is a great result for Britain’s energy security and for hard-pressed billpayers, because these new wind farms will generate the power we need at a lower cost than new gas or nuclear plants, and at a stable and predictable price,” said Ana Musat, RenewableUK’s executive director of policy.
“The UK has made the right decision to roll out renewables at speed and at scale, giving our country greater energy security and protecting consumers against volatile global gas prices which caused the last energy crisis,” she added.
Trevor Hutchings, chief executive of the Renewable Energy Association, said the scale of capacity secured marked a shift for the UK power system. “Today’s record offshore wind auction is a turning point for Britain’s energy system. Securing 8.4 GW of new capacity will help cut bills and restore confidence in the market,” he said.
“With offshore wind now around 40% cheaper than new gas power, expanding renewables is the fastest, cheapest way to stabilise prices, reduce reliance on imported gas and take back control of Britain’s energy,” Hutchings added.
Market analysts also viewed the auction outcome as a positive signal for investors. Cornwall Insight renewable generation lead Lucy Dolton said the level of participation, with up to 25 GW eligible to enter AR7, showed the UK “remains an attractive place to invest, with strong competition for CfDs”.
ORE Catapult chief executive Steve Foxley said the auction had improved pipeline certainty for the sector but cautioned that further effort was needed to maximise the benefits. “The UK will also need a laser like focus on innovation to fully reap the benefits of offshore wind,” he said.
“That means meeting the technology challenges of delivering the volume of offshore wind capacity needed, whether that’s through supercharging our ability to manufacture turbines quickly, finding new opportunities to extending the life of our existing fleet, or embracing new smart approaches to how we manage and maintain turbines,” Foxley added.
