The UK government has set a total budget of GBP 1.08 billion (approximately EUR 1.24 billion) for offshore wind and floating wind in the Contracts for Difference (CfD) Allocation Round 7 (AR7) renewables auction.
A total of GBP 900 million has been set for fixed-bottom projects in Pot 3, with delivery years of 2028/29, 2029/30, or 2030/31.
Pot 4 is reserved for floating wind, and a total of 180 million has been made available, with delivery years 2028/29 or 2029/30. The capacity cap will not apply to either of the pots, according to the Department for Energy Security and Net Zero (DESNZ).
The government has set the administrative strike price at GBP 113 per MWh for offshore wind projects and GBP 271 per MWh for floating wind.
In Pot 3, there will be Maxima of 30 GW on both offshore wind Scotland projects and offshore wind projects, said the government.
“The level of the Maxima is purely technical, bearing no relationship to actual AR7 capacity or Government targets. The Maxima will allow for separate clearing prices, while maintaining the merit order, and help ensure competitive tension between technology groupings in the Pot,” according to DESNZ.
“This auction is another step towards delivering the clean power this country needs to end our reliance on volatile global gas prices, ensuring our energy security and bringing down bills for good. Our competitive new auction process will allow us to buy the right amount of clean power at the right price on behalf of the British people, so we can take back control of our energy,” said UK energy minister Michael Shanks .
This year’s Allocation Round, launched on 7 August, will grant successful projects 20 years of support.
According to the official schedule, sealed bids for offshore wind projects in AR7 will be submitted between 11 and 17 November, with the results expected on 14 January.
The CfD and its predecessor investment contracts have already delivered 10 GW of renewable capacity, with a further 23 GW contracted to become operational by 2030.
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