Repowering progress: Innovation and opportunity for wind in CfD AR7

As the UK works towards a fully decarbonised energy system, wind power remains at the heart of that ambition. Together, onshore and offshore wind now provide over of capacity in the UK. Yet to reach 2030 clean power targets, this capacity will need to at least double within the next five years.

Current forecasts show the UK falling short of that trajectory, and bridging the gap will require faster deployment, stronger investment signals, and continued innovation. That’s why the upcoming Contracts for Difference (CfD) Allocation Round 7 (AR7) is so important. The auction will not only determine how much new capacity is delivered but also mark the first inclusion of repowered wind projects, reflecting the growing role of innovation and technology in delivering the UK’s clean power goals.

Wind power’s proven value

Wind power has already made a substantial contribution to the UK economy. New analysis from University College London (UCL) revealed that between 2010 and 2023, wind generation saved UK consumers around £104 billion by lowering electricity prices and reducing dependence on volatile international gas markets. by lowering electricity prices and reducing dependence on volatile international gas markets.

This underlines a crucial point that investment in renewables is not just an environmental commitment, but an economic decision that supports both consumers and long-term UK growth. Wind power strengthens energy security, supports affordability, and helps reduce the UK’s dependence on imported fossil fuels, all of which underline the need to maintain momentum in future deployment.

Balancing budget and ambition in CfD AR7

While we await the budgets for onshore wind and other technologies, the government has confirmed a total £1.08 billion budget for offshore wind technologies in CfD AR7, a drop from ~£1.35 billion across offshore and floating offshore in CfD AR6.

This slight reduction on the previous year has drawn criticism from the industry. With around 20GW of eligible capacity potentially ready to bid, the reduced budget may only support around a quarter of that potential, limiting the ability to unlock the full potential pipeline across the UK.

Extending the life of wind power through repowering

Against this backdrop, technological innovation will be essential to sustaining momentum in the wind sector and maximising the impact of future CfD rounds.

As highlighted in the government’s Net Zero Technology Outlook report, innovation will be central to accelerating the transition to clean energy. One of the most promising technological developments in wind is repowering, replacing older turbines with newer, more efficient models that can generate far more electricity from the same site.

A wind turbine can typically operate for about 25 to 30 years. Currently, there are about 850 turbines over 21 years old in the UK, representing 0.6GW of capacity, but this is due to rise to an estimated 3GW by 2030. By 2050, around 5,000 onshore turbines are expected to reach the end of their operational life, making repowering critical to maintaining and growing the UK’s renewable generation capacity.

When these aging projects reach the end of their lifespan, developers can either extend their life, decommission, or repower. Repowering provides a practical way to extended asset life and scale renewable output, offering several key benefits:

From policy foundation to practical delivery

Crucially, repowered projects are now eligible to participate in CfD AR7, a recognition of their potential strategic value. This inclusion marks an important milestone, signalling that innovation and asset optimisation are as vital to the UK’s energy transition as building new capacity.

AR7 is best viewed as a policy foundation, setting the stage for wider participation in future rounds such as AR8 and AR9. Although some of the necessary infrastructure already exists, repowering typically still requires full planning applications, Environmental Impact Assessments (EIAs), and renewed community engagement, particularly as new turbine layouts and taller models are introduced.

Grid readiness can also affect delivery timelines, but Ofgem’s ongoing reforms are beginning to ease these constraints, paving the way for faster and more coordinated repowering in the years ahead.

Looking ahead

The UK’s wind sector stands at a pivotal moment. With over a decade of evidence showing the economic and security benefits of renewables, the case for continued investment has never been clearer.

As AR7 approaches, the challenge is to ensure that the CfD remains strong enough to unlock both new capacity and the benefits of technological progress. Repowering represents a practical route to accelerating delivery, maximising the potential of existing assets while also driving innovation and efficiency.

While large-scale participation of repowered wind in AR7 may be limited, developers that engage early on planning and grid issues will be well-positioned to take advantage of future rounds.

If the UK can align policy ambition with technological opportunity, repowered wind will not only indicate the next phase of the energy transition but also stand as a foundation of long-term energy security and economic resilience.