Britain has reached new highs in its transition to clean energy, following the largest offshore wind auction ever held in the UK or Europe
The latest Contracts for Difference allocation round (AR7) has locked in 8.4 gigawatts (GW) of offshore wind capacity, enough to generate clean electricity equivalent to powering more than 12 million homes.
The results of the AR7 auction show a decisive step towards the government’s goal of achieving clean power by 2030, while reducing household energy bills and cutting reliance on volatile global fossil fuel markets.
Biggest offshore wind procurement in history
The AR7 auction is the biggest single procurement of offshore wind capacity ever achieved in Britain and Europe. It follows the recovery of the sector after a failed 2023 auction that secured no offshore wind projects, and builds on the momentum restored in the previous round.
With 8.4GW now secured, the UK is on track to meet rising electricity demand as power use is expected to more than double by 2050. The scale of the auction also sends a strong signal to investors, showing confidence in the UK as a stable and competitive market for renewable energy.
Offshore wind is cheaper than new gas
New analysis published alongside the AR7 auction results confirms that offshore wind is now significantly cheaper than building and operating new gas-fired power stations.
Using industry-standard levelled cost of energy calculations, new gas generation is estimated at £147 per megawatt hour, while fixed offshore wind secured in AR7 averages £90.91 per megawatt hour.
When measured in 2012 benchmark prices, offshore wind comes in at £65.25 per megawatt hour, making it around 40 per cent cheaper than gas.
This cost advantage strengthens the case for renewables as the backbone of Britain’s future energy system.
Investment and jobs across the UK
The auction is expected to unlock around £22 billion in private investment and support approximately 7,000 skilled jobs across the country. Projects have been secured in every nation of the UK, spreading economic benefits well beyond traditional energy hubs.
Major fixed offshore wind projects include Dogger Bank South off the coast of Yorkshire, Norfolk Vanguard in East Anglia, Berwick Bank in the North Sea, and Awel Y Môr, the first Welsh project to win a contract in more than a decade. Berwick Bank is set to become the largest planned offshore wind project in the world.
The auction also delivers progress in floating offshore wind, an emerging technology crucial for deeper waters. Projects such as Erebus in the Celtic Sea and Pentland off Scotland have secured contracts, supported by investment from Great British Energy and the National Wealth Fund.
Energy security and cutting bills
Expanding homegrown renewable power reduces Britain’s exposure to global gas price shocks, which have historically contributed to economic instability. In 2025 alone, wholesale gas prices rose sharply amid geopolitical tensions in the Middle East, highlighting the risks of continued reliance on fossil fuels.
Research shows that renewables already reduced wholesale electricity prices by up to a quarter in 2024, and as more wind and solar come online, they are expected to set market prices more frequently than gas.
Combined with recent budget measures that remove an average of £150 from annual energy bills, the expansion of offshore wind is positioned as a long-term solution for affordability, security, and climate resilience.
The AR7 results show a turning point for Britain’s energy system, placing clean, domestically produced power at the centre of economic growth and national security for decades to come.
