The UK government is preparing to make this year's Contracts for Difference (CfD) auction the “biggest and most successful” ever held, according to Chris Stark, the head of mission control for Clean Power 2030 at the Department for Energy Security and Net Zero. Stark spoke to delegates at the SR Offshore 2025 conference in Glasgow, stating that London would soon consult on proposals for Allocation Round 7 (AR7).
In the coming weeks, the government will release a consultation examining the possibility of allowing projects to enter the auction without full planning permission and extending the term of CfDs. These changes are aimed at improving the auction process, which was expected by industry executives last year.
Stark explained that the government is taking extra time to refine the design of the auction, emphasizing that “getting it right” is crucial. “We are focused on making this by far the most successful auction we've ever had,” he said. Stark noted that AR7 is intended to “completely overturn” the disappointment of AR5 while building on the “reasonable success” of AR6.
Stark highlighted the importance of AR7 and next year's AR8 in meeting the UK's offshore wind targets, noting that these auctions are key to securing the capacity needed to achieve 43GW to 50GW of offshore wind by the end of the decade. “2025 is a critical year,” he added, underscoring the urgency of implementing policy to reach the government's ambitious renewable energy goals.
