UK sets AR7 offshore wind auction budget UK sets AR7 offshore wind auction budget
Posted on 28 October 2025
The UK government has set the budget for offshore wind technologies in the AR7 Contracts for Difference auction.
A total of £900m has been made available to fixed-bottom projects in Pot 3, which has been set delivery years of 2028-29, 2029-30 and 2030-31.
A further £180m is available to floating wind projects competing in Pot 4, with delivery years of 2028-29 and 2029-30.
Both purses are in 2024 prices, and no overall capacity caps will apply, according to energy department DESNZ.
Separate 30GW maximas will apply in Pot 3 for Scottish and non-Scottish projects.
DESNZ said the maxima level 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,” the department stated.
Fixed-bottom offshore wind has been set a £113 per megawatt-hour administrative strike price (ASP), while the floating wind ASP is set at £271/MWh, as previously confirmed by the government. Both figures are set in 2024 prices.
The sealed bidding window for offshore wind technologies in AR7 is scheduled to take place between 11 and 17 November, with results to be announced on 14 January, according to the official timetable.
A budget and bidding window dates for non-offshore wind technologies running under the separate AR7a auction stream have not yet been confirmed. London said these details will be provided in due course.
UK energy minister Michael Shanks said: “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.”
Source: https://renews.biz/103868/uk-sets-ar7-offshore-wind-auction-budget/
