UK Secures Record 8.4GW Offshore Wind Deal in Europe’s Biggest Auction
The UK has secured a record 8.4 gigawatts (GW) of offshore wind in its latest renewables auction, marking the largest single offshore wind procurement ever held in Britain or Europe.
The projects will generate enough clean electricity to power the equivalent of more than 12 million homes, as the government pushes to meet its Clean Power 2030 target and reduce reliance on fossil fuels. Ministers say the result puts the UK firmly on track to deliver a low-carbon power system while cutting energy bills and boosting energy security.
The auction, known as Contracts for Difference Allocation Round 7 (AR7), follows the collapse of the 2023 auction round, when no offshore wind projects were secured. After stabilising the market in AR6, this latest round has delivered a dramatic rebound, securing a record volume of new capacity and unlocking around £22 billion in private investment, alongside support for around 7,000 jobs across the UK.
New figures published alongside the auction claim that offshore wind is now cheaper than new gas-fired power generation. Using the Levelised Cost of Electricity (LCOE) metric, the government estimates the cost of building and operating a new gas power plant at £147 per megawatt-hour (MWh). By contrast, the average price for fixed offshore wind projects in this auction was £90.91/MWh, or £65.25/MWh in 2012 prices, which the government says is around 40% cheaper than gas.
Projects were awarded across the UK, including major fixed offshore wind developments such as Dogger Bank South, Norfolk Vanguard, Berwick Bank in Scotland and Awel y Môr in Wales. The auction also delivered progress in floating offshore wind, with projects such as Erebus in the Celtic Sea and Pentland in Scotland, backed by investment from Great British Energy and the National Wealth Fund.
The government says the scale of the auction reflects both rising electricity demand and the need to shift away from fossil fuels. In 2024, renewables supplied 51.5% of UK electricity, led by wind at 30%. Fossil fuels still made up 34%, with natural gas accounting for 29.9%, while nuclear supplied 14.5%.
Despite the record result, the auction has attracted strong political criticism over price. Reform UK described the outcome as a “colossal renewable energy subsidy”, claiming electricity produced under the contracts will be around 50% more expensive than last year’s average market price, and warned that future governments may not recognise new renewable contracts.
The Conservative Party also attacked the deal, pointing to the headline offshore wind price of around £95/MWh in 2025 prices, which it says is the highest in a decade. Conservatives argue that gas power without a carbon tax could be produced for under £55/MWh, and that the wind contracts do not reflect additional costs such as grid upgrades, payments to switch off turbines during oversupply, and the need for backup power when wind output is low. They also criticised the extension of contract lengths to 20 years, which they say increases long-term costs for consumers.
The government argue that the contracts provide long-term price certainty and protect households from volatile fossil fuel markets, which have driven sharp energy price swings in recent years. With 8.4GW of new offshore wind now secured, the AR7 auction represents one of the biggest single investments in clean power in UK history — and a major test of whether long-term fixed-price renewables can deliver both lower emissions and lower bills in the years ahead.