Leading renewables developer OnPath Energy is moving forward with plans for a new onshore wind farm in East Ayrshire after being awarded a Contract for Difference (CfD) in the UK government’s latest allocation round.
The Lethans Extension Wind Farm was selected in Allocation Round Seven (AR7) at a strike price of £72.24 per MWh, which is five pounds per MWh below the average wholesale electricity price in Great Britain last year.
OnPath Energy secured planning permission for the ten-turbine project in 2024 and is now aiming to start work on site late 2027, with the turbine tips set to be up to 250m in height.
The AR7 auction success follows on from OnPath securing a Contract for Difference for the adjacent, 22-turbine Lethans Wind Farm in the previous allocation round.
Lethans and Lethans Extension will deliver enough renewable electricity between them to power around 190,000 homes every year, with both projects scheduled to come online in 2029.
Community benefits funds totalling more than £24 million will be available during the projects’ lifespans, while OnPath Energy is expecting to invest over £430 million in contractors, suppliers and services based within 60km of the site over the lifetime of the projects.
OnPath Energy is aiming to invest around £1 billion in clean energy projects across the UK by 2030 as part of its drive towards becoming the UK’s leading renewable energy developer.
'The contracts for difference scheme has been a key enabler for the success of onshore wind industry in Great Britain and we are pleased that Lethan’s Extensions has successfully been awarded a contract in the latest allocation round,' said Richard Dunkley, CEO at OnPath Energy
'The contract for difference ensures that investors have the confidence needed to invest in new renewable energy generation whilst offering consumer protection against volatile electricity prices and will be a key tool Government can use to achieve its Clean Power ambitions.
'The strike price, which is five pounds per MWh below average wholesale electricity prices in 2025, shows that onshore wind is one of the cheapest forms of renewable energy generation available, and alongside offshore wind will be the backbone of the UK’s future Net Zero energy system.
'Our AR7 auction success is a key milestone for the business and we’ll now be moving forward to deliver on the Lethans and Lethans Extension Wind Farms.
'We will expect to bring forward a range of new proposals for onshore wind farms across Great Britain that will build on our existing plans to invest around one billion pounds in total in clean energy projects by 2030.'
OnPath Energy is owned by the world’s largest dedicated transition investor and leading global investment firm, Brookfield Asset Management, which has over 46,000 megawatts of operating renewable energy capacity worldwide.
Source: OnPath Energy
