24/07/2025 | Energy markets



Parameters of next clean power auction could help to secure record-breaking amount of new renewable energy capacity
24 July 2025 - RenewableUK press release
Commenting on the Government’s publication of the parameters of the next auction for new clean energy projects, Contracts for Difference Allocation Round 7, RenewableUK's Executive Director of Policy and Engagement Ana Musat said:
"We're pleased to see that the parameters set out by the Government 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 £53 billion in private investment could be secured this year to deliver vital new offshore wind projects, which will strengthen the UK's energy security significantly. Over 20 gigawatts of offshore wind is eligible to bid into this year’s auction – more than our entire current operational offshore capacity and enough to power 22 UK million homes.
"Whilst wind energy projects haven't been immune to the inflation and supply chain pressures facing all major infrastructure projects, they remain cheaper than other forms of electricity generation such as new nuclear and new gas plants, so they offer the best value for money for billpayers. It is also worth noting that, due to competition in auctions, strike prices are likely to end up being lower than these maximum Administrative Strike Price set out by the Government, which act as a consumer backstop.
"Clean power is generated at a fixed and stable price for billpayers. To produce the equivalent amount of electricity that these new offshore wind farms can provide, the UK would have to continue burning over 13 billion cubic meters of gas every year, the equivalent of around a quarter of our annual gas imports. Unlike homegrown renewables, the price of gas fluctuates wildly on international markets, even if it's produced domestically, leaving billpayers vulnerable to the actions of other governments and global events beyond our control.
“As well as the more realistic Administrative Strike Prices and load factors, we welcome the introduction of a separate pot for floating wind in this auction. With the UK in a race to lead the world in developing floating wind components and expertise, it’s vital that we unlock investment in more test and demonstration projects as soon as possible, as this will enable us to scale up this innovative technology faster.
“As we look ahead to Allocation Round 8, we’re urging the Government to extend the delivery years for onshore wind, in line with the Onshore Wind Taskforce’s recommendations, as this is one of the lowest-cost technologies and one of the quickest to build.
“It’s clear that the Government aims to maximise investment in the sector. To that end, we would advise Ministers now to set out a long-term schedule of the timescale of future auctions to help developers and infrastructure investors plan and allocate capital as efficiently as possible, and to increase the confidence of supply chain companies considering new investments in the UK.
“This auction round is progressing in parallel with important programmes such as connections reform and the development of the Strategic Spatial Energy Plan. We’re urging the Government to work closely with industry to provide clear strategic direction on how these reforms will come together, so that we can help to deliver clean power by 2030 at the lowest cost for consumers."
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Notes
For further information, contact
Robert Norris, Head of Communications
07969 229 913 | Robert.Norris@RenewableUK.com
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