UK Raises AR7 CfD Strike‐Price Caps to £113/MWh Offshore and £271/MWh Floating Wind, Says WindEurope

UK Raises AR7 CfD Strike‐Price Caps to £113/MWh Offshore and £271/MWh Floating Wind, Says WindEurope

(IN BRIEF) The UK has increased strike‑price caps for its AR7 CfD auction to £113/MWh for fixed‑bottom offshore wind, £271/MWh for floating offshore wind, and £92/MWh for onshore and remote island wind, all indexed to 2024 prices. WindEurope director Viktoriya Kerelska applauds the move as essential for attracting viable projects and bolstering energy security, jobs and competitiveness. The 2023 AR5 offshore auction failed to secure any bids due to low caps. The AR7 round, offering 20‑year CfDs and a dedicated floating wind pot, could attract up to £53 billion of private investment. WindEurope calls for a rapid publication of budgets and a multi‑year auction roadmap to give industry the certainty it needs.

(PRESS RELEASE) BRUSSELS, 28-Jul-2025 — /EuropaWire/ — WindEurope welcomes the UK Government’s decision to raise strike‑price caps for its upcoming AR7 Contracts for Difference (CfD) auction, updating levels to reflect 2024 cost benchmarks. Under the new framework, fixed‑bottom offshore wind will be capped at £113/MWh, floating offshore wind at £271/MWh, and both onshore and remote island wind at £92/MWh.

Viktoriya Kerelska, Director of Advocacy and Messaging at WindEurope, commented: “Aligning auction parameters with current market realities is essential. Fit‑for‑purpose design enables viable projects—strengthening our collective energy security, jobs and competitiveness across Europe.”

In contrast, the 2023 AR5 offshore wind round attracted no bids when strike prices remained unrealistically low. The revised AR7 terms are expected to draw up to £53 billion in private investment, and successful projects will now secure 20‑year CfDs instead of the previous 15‑year term. A dedicated floating wind allocation further cements the UK’s ambition to lead globally in this emerging technology.

For full transparency, WindEurope urges the Government to publish the AR7 budget promptly. An ambitious budget, coupled with a clear long‑term auction calendar—akin to schemes in Germany and France—will help developers, investors and supply‑chain partners plan effectively. The AR7 application window opens on 7 August.

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SOURCE: WindEurope