The United Kingdom has raised the strike price caps for wind technologies in the forthcoming AR7 Contracts for Difference auction. These caps are now £113 per megawatt hour for fixed-bottom offshore wind, £271 per megawatt hour for floating offshore wind, and £92 per megawatt hour for onshore and remote island wind, based on 2024 prices.
The government expects the revised auction framework to bring in up to £53 billion in private investment for new offshore wind projects. In addition to updated strike prices and load factors, successful projects in AR7 will receive contracts for 20 years, an increase from the previous 15 years. A separate funding pot will be introduced for floating wind projects. The application window for AR7 will open on 7 August.
