RenewableUK responds to parameters of next clean power auction

23 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 million UK 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".

(ends)

Notes

For further information, contact

Robert Norris, Head of Communications
07969 229 913 | Robert.Norris@RenewableUK.com

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