On 14 January 2026, the United Kingdom awarded a total of 8.4 GW of offshore wind capacity under Allocation Round 7 (AR7), marking the largest offshore wind auction ever held in Europe.
The awarded capacity includes 8.2 GW of bottom-fixed offshore wind and nearly 200 MW of floating wind projects. The new capacity is expected to generate enough electricity to power approximately 10 million homes.
Record competition drives competitive pricing
AR7 was one of the most competitive offshore auctions ever held in Europe. A record 19 projects, representing a combined potential capacity of 24 GW, were eligible to bid.
The strong competition resulted in 2024 strike prices of:
£91.20/MWh in England and Wales
£89.49/MWh in Scotland
These levels are approximately 40% lower than the cost of building and operating new gas plants in the UK (£147/MWh) and nearly 30% lower than new nuclear plants (£124/MWh).
The 8.4 GW of new offshore wind capacity is estimated to save UK billpayers nearly £1.7 billion per year compared to gas generation.
CfD framework proves effective
The UK’s two-sided Contracts for Difference (CfD) mechanism once again demonstrated its ability to de-risk projects and provide long-term revenue visibility.
With a total budget of £1.79 billion — exceeding the initial £1.1 billion allocation — the UK Government secured additional capacity to enhance energy security and economic resilience.
Following the failed AR5 round in 2023 and limited new capacity under AR6, AR7 represents a significant turning point for offshore wind deployment in the UK.
AR7 winning projects
AR7 awarded support to six bottom-fixed offshore wind projects and two floating wind projects:
| Project | CfD Capacity (MW) | Owner(s) | Strike Price (2024) | Delivery (Phase 1) |
|---|---|---|---|---|
| Awel y Mor | 775 | RWE (60%), Stadtwerke München (30%), Siemens Financial Services (10%) | £91.2/MWh | 2030/31 |
| Dogger Bank South | 3000 | RWE (51%), Masdar (49%) | £91.2/MWh | 2030/31 |
| Norfolk Vanguard East | 1545 | RWE | £91.2/MWh | 2029/30 |
| Norfolk Vanguard West | 1545 | RWE | £91.2/MWh | 2028/29 |
| Berwick Bank | 1380 | SSE Renewables | £89.49/MWh | 2030/31 |
| Pentland (floating) | 92.5 | Copenhagen Infrastructure Partners (80%), Eurus Energy (10%), Hexicon (10%) | £216.49/MWh | 2029/30 |
| Erebus (floating) | 100 | TotalEnergies (80%), Simply Blue Energy (20%) | £216.49/MWh | 2029/30 |
The 192 MW awarded to floating wind projects marks another step toward commercial-scale floating wind deployment. Industry stakeholders emphasise the need for tailored support schemes, clear auction timelines for floating wind, and infrastructure investment in ports to sustain momentum.
Author
Mesut Kul
Rüzgar Enerjisi (Wind Energy)Wind Energy Turkey · Ekim 2026 · Özel EkRead the latest issue free →
