The Anonymous Widower

UK To Launch Next CfD Allocation Round In July

The title of this post, is the same as that of this article on offshoreWIND.biz.

This is the sub-heading.

The UK government has announced that the next Contracts for Difference (CfD) allocation round will open in July 2026.

Contracts for Difference Allocation Round 7 did well and according to Google AI raised these contracts.

Contracts for Difference (CfD) Allocation Round 7 (AR7) results, announced in January 2026, secured a record 8.4 GW of offshore wind capacity, enough to power 12 million homes. The auction awarded contracts to 6.865 GW of fixed-bottom offshore wind and 192.5 MW of floating wind, with strike prices around £91/MWh (2024 prices).

Key Results of AR7:

Capacity Secured: Over 8.4 GW (8,437.5 MW) of offshore wind, with 6,090 MW in England, 1,380 MW in Scotland, and 775 MW in Wales.

Key Winners: RWE secured nearly 6.9 GW across four projects, including Dogger Bank South and Norfolk Vanguard; SSE Renewables secured 1,380 MW for Berwick Bank Phase B; and floating wind projects included Pentland and Erebus.

Strike Prices: Fixed-bottom offshore wind cleared at £91.20/MWh (£89.49/MWh in Scotland), while floating offshore wind cleared at £216.49/MWh.

Investment & Jobs: The projects represent over £22 billion in private investment and support approximately 7,000 jobs.

Timeline: The projects are expected to start delivering power from 2028 onwards.

Out of curiosity, I asked Google AI, “How Many GWs Are Expected To Be Signed Up In The UK’s CfD Round 8” and received this answer.

Allocation Round 8 (AR8) of the UK’s Contracts for Difference (CfD) scheme is expected to launch in July 2026. While specific, finalized GW targets for the winning bids have not yet been announced, the government is adapting the auction to support increasingly large projects, including potential floating offshore wind farms of 1GW+.

Following the record-breaking AR7, which secured 8.4 GW of offshore wind capacity in January 2026, AR8 is expected to focus on continuing this momentum to meet the UK’s “Clean Power 2030” objectives.

Key context regarding expected AR8 capacity includes:

Growing Project Scale: The AR8 consultation indicates that upcoming floating offshore wind projects are likely to be much larger (potentially 1GW+) than previously expected, prompting changes to the scheme to support this scale.

Targeted Procurement: Industry sources previously indicated that the combination of AR7 and AR8 was expected to secure significant capacity to meet 2030 goals, with over 20 GW of offshore wind previously identified as eligible for upcoming rounds.

Supply Chain Focus: The government has issued, or is planning, Supply Chain Plan requirements for solar projects of 300 megawatts or more and for onshore wind, indicating high volumes are anticipated in these sectors.

The application window for AR8’s Clean Industry Bonus is currently planned for May 2026, with the main auction following in July 2026.

Conclusion

It doesn’t really indicate a figure for AR8, but does indicate that AR7 and AR8 together have a joint target of over 20 GW.

  1. I can do a small calculation.
  2. AR7 secured 8.4 GW of offshore wind capacity in January 2026.
  3. As AR7+AR8 are expected to secure 20 GW before 2030, that means AR8 will secure  11.6 GW.

So this means that AR8 could be 38 % bigger than AR7.

 

 

 

 

March 29, 2026 - Posted by | Artificial Intelligence, Energy | , , , , ,

1 Comment »

  1. The awarding of a CfD contract is no guarantee that any of it ever gets built. ie writ large Hornsea 4 cancelled, Norfolk Borelias cancelled. Mind you given the cost/MWhr keeps going up there is probably more chance the AR7 will get constrcuted.

    Comment by Nicholas Ronald Lewis | March 29, 2026 | Reply


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