The United Kingdom has reached a historic milestone in its energy transition after securing 8.4 GW of offshore wind capacity in the largest offshore wind auction ever held in Europe, enough to generate clean electricity equivalent to the consumption of more than 12 million homes.

The outcome comes from the seventh Contracts for Difference (CfD) Allocation Round (AR7), led by the Department for Energy Security and Net Zero, and marks a decisive turnaround after the failure of the fifth auction round under the previous government, in which no offshore wind projects were awarded.

According to the government, the results place the UK “firmly on track” to deliver its clean power mission by 2030, while strengthening energy sovereignty, reducing exposure to imported fossil fuels and helping to cut energy bills over the long term.

Offshore wind 40% cheaper than new gas generation

One of the most significant outcomes of the auction is the price secured for offshore wind, which is 40% lower than the cost of building and operating a new gas-fired power station.

Based on official figures using the Levelised Cost of Energy (LCOE):

• The cost of building and operating a new gas plant stands at £147 per megawatt hour (MWh).

• The average strike price for fixed-bottom offshore wind in this auction is £90.91/MWh (or £65.25/MWh using the standard 2012 price index).

• Strike prices are £91.20/MWh in England and Wales and £89.49/MWh in Scotland.

• For floating offshore wind, the strike price is £216.46/MWh.

These figures reinforce offshore wind, alongside solar and onshore wind, as the cheapest forms of new electricity generation in the UK.

£22 billion of private investment and 7,000 jobs

The auction is expected to unlock around £22 billion in private investment, supporting approximately 7,000 skilled jobs across the country, from the Scottish Highlands to the Celtic Sea, according to government estimates.

Successful fixed-bottom offshore wind projects include:

• Dogger Bank South, off the coast of Yorkshire, and Norfolk Vanguard, off East Anglia, two of the world’s largest offshore wind farms.

• Berwick Bank, in the North Sea, the first major new Scottish offshore wind project since 2022 and the largest offshore wind farm currently planned worldwide.

• Awel y Mor, the first Welsh project to secure a contract in more than a decade.

Boost for floating offshore wind

AR7 also represents a major step forward in emerging offshore wind technologies, particularly floating offshore wind, with winning projects including:

• Erebus, in the Celtic Sea.

• Pentland, in Scotland.

These projects are backed by Great British Energy and the National Wealth Fund, underlining the UK’s ambition to lead in next-generation clean energy technologies.

Reducing exposure to fossil fuel volatility

The government stressed that accelerating investment in domestically produced clean energy reduces the UK’s exposure to volatile global fossil fuel markets, which have contributed to half of all recessions since the 1970s.

In 2025 alone, wholesale gas prices surged by more than 15% in a single week, following global price shocks linked to geopolitical instability in the Middle East and the Iran–Israel conflict.

The offshore wind announcement follows wider budget measures aimed at cutting household energy bills, with the government set to remove an average of £150 from energy bills from April 2026.

Renewables remain the cheapest power option

Research cited by the government shows that renewables have already cut wholesale electricity prices by up to a quarter in 2024, equivalent to around £25/MWh, and that increasing renewable capacity makes it more likely that clean technologies, rather than gas, set wholesale power prices.

With this record-breaking offshore wind auction, the UK reinforces its commitment to delivering cheaper, cleaner and more secure electricity, positioning offshore wind at the core of its future energy system.

Energy Secretary Ed Miliband described the outcome as a landmark moment for the country:“With these results, Britain is taking back control of its energy sovereignty. It is a historic win for those who want Britain to stand on its own two feet, controlling its own energy rather than relying on markets run by petro-states and dictators.”

Mission Control Chief Chris Stark highlighted the significance of the result amid industry challenges: “Despite the global headwinds facing offshore wind in recent years, we have secured a record amount of capacity at a competitive price for consumers.”

Meanwhile, Neil McDermott, Chief Executive of the Low Carbon Contracts Company (LCCC), emphasised the role of the CfD mechanism: “These results showcase the strengths of Contracts for Difference in providing investor certainty and supporting jobs across Britain, with more than 10 GW already operational and a further 25 GW in the pipeline.”