Higher CfD strike prices set to attract record investment

Maximum strike prices for wind energy have been raised for the upcoming AR7 Contracts for Difference round in a move welcomed by industry leaders.

For fixed-bottom offshore wind the administrative strike price is set at £113 per MWh – up from up from £102 in 2024 - and for floating wind the cap is £271/MWh, based on 2024 prices.

Onshore and remote island wind have been set at £92/MWh in 2024 prices, while solar is £75/MWh, lower than in the previous round. Fixed-bottom and floating offshore wind technologies will each have their own dedicated pots in the auction.

The Government said the higher prices reflected the fact that renewable technologies “continue to face macroeconomic uncertainty and supply chain constraints”.

RenewableUK's Executive Director of Policy and Engagement Ana Musat said the parameters set out for this year's auction are more “reflective of market realities” than in previous years.

“This creates an opportunity to attract record levels of investment into this allocation round: up to £53bn in private investment could be secured this year to deliver vital new offshore wind projects, which will strengthen the UK's energy security significantly.”

The application window for the CfD round is scheduled to launch on 7 August.