The UK government has increased the maximum strike prices it will guarantee for wind power projects ahead of its largest-ever Contracts for Difference (CfD) auction, scheduled for August 2025.
- Offshore wind cap raised from £73/MWh to £81/MWh, an 11% increase.
- Floating offshore wind cap increased to £194/MWh, up from £176/MWh.
The changes reflect growing cost pressures in the sector, including supply chain challenges, inflation, and rising interest rates. The aim is to ensure sufficient investment in renewable energy to meet national climate targets, including plans to expand offshore wind capacity from around 15 GW today to as much as 50 GW by 2030.
Government officials emphasized that these figures are maximum administrative prices, with actual auction outcomes expected to be more competitive. The CfD model provides stable revenue for developers while protecting consumers by adjusting payments depending on market electricity prices.
This adjustment is part of a broader effort to make the upcoming Allocation Round 7 the most ambitious and impactful renewable energy auction in the UK’s history.
