UK Opens First Step of Seventh Offshore Wind Solicitation
The window officially opened today, August 7, for the first phase of AR7, the UK’s next solicitation for renewable energy. This round is viewed as the most consequential in the UK’s energy goals, and the government has taken key steps to support the industry and to create strong interest.
Round 7 begins with a 20-day period for eligible developers to submit their initial applications, which will be assessed in September against the qualifications. The final timing for submitting bids may change based on the current consultation process and potential challenges, but the program anticipates bidding may conclude at the end of October or the latest, by early January 2026. Results will be announced approximately a month after the close of bidding.
The UK highlights that through its Contracts for Difference (CfD) scheme, it has already delivered more than 10 GW of capacity, which is in operation – the UK has a total of 14.7 GW of offshore wind capacity currently installed, making it the largest in Europe and second only to China. In July, the government highlighted that for the first time, more than 50 percent of the country’s electricity was coming from renewable energy. An additional 23 GW from offshore wind is contracted to become operational by 2030 as the UK moves toward a goal of 50 GW.
Analysts have warned that this round is critical in the UK’s efforts to meet its goals for renewable energy. The UK stumbled in 2023 when round 5 attracted no bidders, and the industry warned that the support mechanisms did not balance the risk. The government of Sir Keir Starmer responded in 2024 and again in 2025, taking steps to increase the support as part of its efforts to accelerate the transition.
The Government has committed a budget of over £544 million ($730 million) to the program to provide long-term support. Among the key steps is lengthening the span of the CfD contracts from 15 to 20 years. They said the longer contracts would provide greater financial certainty for developers. The strike price for both fixed-bottom and floating wind projects was also increased to reflect current market conditions.
“It’s good that the UK is adjusting its AR7 auction parameters to reflect current market conditions,” said Viktoriya Kerelska, Director of Advocacy and Messaging at the trade group WindEurope. “Fit-for-purpose auction design that allows for viable projects is what gets wind farms built. And this is for the benefit of national and European energy security, employment, and competitiveness.”
The results of this round will be closely watched by the industry, especially following yesterday’s news that a German solicitation received no bids. The UK has also faced setbacks despite its efforts to support the industry. Ørsted in May said it had decided to discontinue the Hornsea 4 project in its current form. The company reported that since the Contract for Difference (CfD) award in allocation round 6 (AR6) in September 2024, the 2,400 MW Hornsea 4 project has seen several adverse developments relating to continued increase of supply chain costs, higher interest rates, and an increase in the risk to construct and operate Hornsea 4 on the planned timeline for a project of its scale.
WindEurope has called for the UK to set a long-term schedule for future auctions. It says this would help developers plan and allocate capital. They said it would also increase the confidence of the supply chain companies. Problems in the supply chain and increasing costs have been some of the biggest challenges to the industry’s development.