Contracts for Difference Allocation Round 7: Offshore Wind Projects Debate

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Department: Department for Business and Trade

Contracts for Difference Allocation Round 7: Offshore Wind Projects

Michael Shanks Excerpts
Wednesday 14th January 2026

(1 day, 19 hours ago)

Written Statements
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Michael Shanks Portrait The Minister for Energy (Michael Shanks)
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The seventh contracts for difference auction results have been published today, unlocking a record 8.4 GW of offshore wind projects. We have taken a significant step forward in our mission, showing that clean power by 2030 is achievable and on track. Despite well-known global pressures facing the industry, we have delivered enough capacity to power the equivalent of over 12 million homes. This is a major result and means we can take back control of our energy, meet the growing demand of electricity and get bills down for good for working people.

For fixed-bottom offshore wind, this represents the single largest auction in European history. These projects will be built right across Great Britain, supporting skilled jobs and investment in coastal and industrial communities. The clearing price for offshore wind in this round was on average 90.91 per MWh, far below the auction’s price cap and significantly cheaper than the 147 per MWh cost of building and operating new gas plants.

This proves that clean, home-grown power is the most affordable and secure choice for the country.

These results include Berwick Bank, which is the first new Scottish project to be procured through the CfD in three years, and Awel y Môr, the first Welsh project to win a contract in more than a decade. This will provide a boost to the Scottish and Welsh economies, underlining this Government’s commitment to see all parts of the UK benefit from clean power.

These results also represent major progress in our efforts to lead the world in the emerging technologies of the future, securing 192.5 MW of floating offshore wind capacity. 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. This success builds on last year’s leasing round 5 auction of 4.5 GW of seabed. These additional projects will boost regional economies and ensure that Britain continues to reap the benefits of clean power.

This auction will unlock around £22 billion in private investment in every corner of the country, supporting at least 7,000 jobs in areas including Scotland, north Wales, Norfolk, and Yorkshire and the Humber—delivering a major boost for the economy.

In a world of increasing instability, this Government are determined to back secure, clean, home-grown power to drive down costs for families, and provide the energy security our country needs.

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