- Record 8.4GW of offshore wind secured in Europe’s biggest ever offshore wind auction - enough clean electricity to power the equivalent of over 12 million homes
- as Britain races to cut bills and meet growing energy demand, price for offshore wind agreed at 40% lower than the cost of building and operating a new gas power plant
- puts the country firmly on track to deliver the mission for clean power by 2030, taking back control of its energy, and lowering bills for good
- successful results unlock £22 billion in private investment and supports 7,000 good, skilled jobs in every corner of the country - from the Scottish Highlands to the Celtic Sea
Britain has taken a monumental step towards ending the country’s reliance on volatile fossil fuels and lowering bills for good, by delivering a record-breaking offshore wind result in its latest renewables auction.
The results deliver the biggest single procurement of offshore wind energy in British and European history - confounding the global challenges facing the industry - a major vote of confidence in the UK’s new era of energy sovereignty and abundance.
The government inherited the fiasco of the previous government’s failed Auction Round 5, in which not a single offshore wind project was secured. The last auction round, AR6, got the industry back on its feet. Now this auction round, known as Contracts for Difference AR7, has secured a record capacity of 8.4GW of offshore wind which will generate enough clean electricity to power the equivalent of 12 million homes. The ground-breaking result puts Britain firmly on track to achieve its clean power mission by 2030.
These results show offshore wind is cheaper to build and operate than new gas. In new figures published today using the LCOE industry metric, the cost of building and operating a new gas fired power station is £147 per megawatt hour. By contrast, the results for fixed offshore wind in today’s auction were £90.91 per megawatt hour on average - or £65.25 in the commonly used benchmark of 2012 prices - 40% cheaper than the cost of building and operating new gas.
This auction will unlock around £22 billion in private investment, supporting around 7,000 jobs, bringing growth and good jobs to all regions of the country – and particularly to the country’s industrial heartlands. Clean power is also essential to tackle the climate crisis, the greatest long-term threat the country faces.
Projects have won in every part of the United Kingdom - including fixed offshore wind in:
- Dogger Bank South off the coast of Yorkshire and Norfolk Vanguard off East Anglia – two of the largest offshore wind farms in the world, supporting thousands of jobs
- Berwick Bank in the North Sea - the first new Scottish project since 2022 and the largest planned offshore wind project in the world
- and Awel Y Môr - the first Welsh project to win a contract in more than a decade
These results also represent major progress in our efforts to lead the world in the emerging technologies of the future, floating offshore wind. Winning projects include Erebus, in the Celtic Sea, and Pentland in Scotland, backed by pioneering investment from Great British Energy and the National Wealth Fund.
The auction round has secured major infrastructure projects which will be drivers for growth and prosperity in local communities for decades to come. As Britain races to meet rising electricity demand, expected to more than double by 2050, and cut energy bills, these results and new analysis published today shows that offshore wind, alongside solar and onshore wind, remain cheaper to build and operate than gas generation.
In an increasingly unstable world, by accelerating investment in homegrown clean power, the government is also reducing the UK’s exposure to volatile global fossil fuel markets, which have contributed to half of all recessions since the 1970s and in 2025 alone, saw prices spike over 15% within a week due to global price shocks after global instability in the Middle East.
This announcement to build more clean, homegrown power follows measures in the budget to cut people’s energy bills, with the government removing an average £150 of costs off energy bills from April this year.
Energy Secretary, Ed Miliband said: 'With these results, Britain is taking back control of our energy sovereignty. This is a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators. It is a monumental step towards clean power by 2030 and the price secured in this auction is 40% lower than the alternative cost of building and operating a new gas plant. Clean, homegrown, power is the right choice for this country to bring down bills for good and this auction will create thousands of jobs throughout Britain.'
Head of Mission Control, Chris Stark said: 'This is a stonking result for delivering on our mission for clean power by 2030. Amid global headwinds and pressures facing the offshore wind sector in recent years, we’ve secured a record amount of capacity at a competitive price for the consumer. We need more offshore wind to meet the increasing demand for electricity in the years ahead, this result powers us towards a future of clean, secure, energy abundance and less reliance on foreign imports.'
Neil McDermott, CEO at the Low Carbon Contracts Company (LCCC), said: 'The results from this allocation round are a prime example of the Contracts for Difference mechanism’s greatest strengths, providing certainty for investors and supporting British jobs across the country. At LCCC, we’re proud of our role in managing these contracts, adding to our existing operational portfolio of more than 10 GW with an additional 25 GW in the pipeline, and providing stewardship of these projects for the next two decades.'
Dhara Vyas, CEO of Energy UK, said: 'Today’s auction results will deliver critical national infrastructure that will strengthen our energy security and deliver lower bills, as well as provide jobs, investment, and economic growth right across Great Britain. It’s more important than ever that we invest in securing our future energy needs to meet the growing demand for power over the coming decades and provide the cheap, plentiful electricity essential to our economic growth. Offshore wind is crucial as part of our growing fleet of wind farms across the country, which reduced wholesale electricity costs by a third last year.'
Ana Musat, Executive Director of Policy at RenewableUK, said: 'This is a great result for Britain’s energy security and for hard-pressed billpayers, because these new offshore 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. 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. Homegrown power is the best defence against geopolitical volatility, and this auction is a significant step forward towards energy independence.'
Jennifer Beckwith, Senior Manager for Energy Transition at the CBI, said: 'Against the backdrop of increasingly volatile global energy markets, securing the UK’s energy supply is a key national priority. These results mark a significant step on the journey towards achieving a more secure, resilient and cleaner energy mix for the years and decades ahead. Accelerating low carbon power generation is core to the UK’s energy transition – a transformation that’s already delivering major economic benefits in terms of investment, jobs and growth across the country. Critical investments in Scotland and Wales demonstrate the strength of UK capability, with Berwick Bank set to become the largest planned offshore wind project in the world.'
Gus Jaspert CMG, Managing Director for Marine at The Crown Estate, said: 'Today’s AR7 results are another vote of confidence in the UK as the best market in the world for offshore wind. Securing over 8GW is a huge step forward in the UK’s global clean energy leadership, reducing our reliance on volatile fossil fuels and powering up a generation of affordable and homegrown clean energy.'
Background
Research published today shows overall that renewables remain the cheapest form of electricity generation to build and operate – and the more renewables we build, the more often they will set the wholesale market price instead of gas.
Independent research confirms that renewables can drive down electricity prices, already having reduced wholesale electricity prices by up to a quarter - or around £25/MWh - in 2024 Energy & Climate Intelligence Unit analysis: Growth in British renewables cutting energy prices.
Strike prices for fixed bottom offshore wind is £91.20/MWh for England and Wales and £89.49/MWh for Scotland, coming out at a blended average of £90.91/MWh. The strike price for floating offshore wind is £216.46/MWh.
In the 2025 Iran-Israel conflict, wholesale gas prices spiked over 15% across a week. (ICIS - independent commodity intelligence services).
The original budget for fixed bottom offshore wind was £900 million and has been increased to £1.790 million. This follows careful consideration of the bids submitted by projects, with the budget increased to secure additional capacity that represents good value for households.
The homes powered estimate reflects the equivalent number of homes that could be powered based on an estimate of the annual generation from the capacity?procured?in AR7. It is not possible to continuously power a home through intermittent renewables – this capacity will work alongside the rest of the electricity system to power homes and businesses.?The estimate is calculated using published subnational electricity consumption data ?and technology specific load?factor assumptions published in the CfD Allocation Round 7 contract allocation framework.?The actual generation will vary based on site specific factors.
Investment figures are based on generation costs data published today for fixed bottom offshore wind only.
Jobs figure based on industry figures from Clean Industry Bonus applications.
A record 8.4GW of offshore wind secured in Europe’s biggest ever offshore wind auction.
Source: GOV.UK
