Skip to main contentFollowing January’s record auction, which saw 8.4 gigawatts (GW) of offshore wind projects secure Contracts for Difference (CfD) subsidy backing, the UK government has announced that additional onshore wind and solar projects have been secured in the latest CfD auction round for non-offshore wind technologies.
The AR7a auction round awarded contracts to 6.2GW of projects, including 4.9GW of solar PV at a clearing price of £65.23/MWh, 1.3GW of onshore wind at £72.24/MWh, and 20.9MW of tidal stream at £265/MWh. These strike prices compare favourably with new gas generation at £147/MWh and new nuclear power at £124/MWh, highlighting the continued cost competitiveness of renewable technologies.
With these results, the total AR7 allocation round has become the largest CfD round to date, with 14.7GW of capacity awarded across 201 projects. The newly contracted capacity is estimated to generate enough electricity to power the equivalent of around 16 million homes, representing a significant step towards the UK’s 2030 clean power ambitions.
Analysts estimate that the AR7 projects could reduce UK gas demand by around 95 terawatt hours (TWh) per year, potentially cutting liquefied natural gas (LNG) imports by up to three-quarters. This reduction would improve energy security and help shield consumers and businesses from volatile fossil fuel markets.
Following the announcement, Energy Secretary Ed Miliband said: “These results show once again that clean British power is the right choice for our country, agreeing a price for new onshore wind and solar that is over 50% cheaper than the cost of building and operating new gas. By backing solar and onshore wind at scale, we’re driving bills down for good and protecting families, businesses, and our country from the fossil fuel rollercoaster controlled by petrostates and dictators. This is how we take back control of our energy and deliver a new era of energy abundance and independence.”
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