The UK Government has released details of its upcoming Contracts for Difference (CfD) auction, Allocation Round 7 (AR7), which will support new offshore and floating offshore wind projects. The auction, which opened to applications in August, will allocate contracts to the lowest-priced eligible projects across the 2028/29 to 2030/31 delivery years. Successful bidders will receive 20-year contracts under the CfD scheme.
The total proposed budget for offshore technologies in AR7 is £1.08 billion in 2024 prices, including £900 million for bottom-fixed offshore wind and £180 million for floating offshore wind. These figures represent the maximum level of government support available through the round.
WindEurope has warned that the proposed budget could enable the development of only about 5–6 GW of new capacity, even though more than 20 GW of projects are ready to compete. The UK currently has 12.5 GW of installed offshore wind capacity and aims to reach 50 GW by 2030. With only two allocation rounds remaining before that target year, limited funding could slow progress and reduce investor confidence.
The government has set maximum strike prices of £113 per megawatt-hour for bottom-fixed offshore wind and £271 per megawatt-hour for floating wind, reflecting the higher cost of the emerging technology. The sealed bidding window for offshore technologies will run from 11 to 17 November, with results due on 14 January 2026.
