On January 14, 2026, the UK government announced the results of its seventh Contracts for Difference (CfD) allocation round, marking a pivotal moment for the nation’s offshore wind ambitions. The auction, known as Allocation Round 7 (AR7), awarded a record 8.4 gigawatts (GW) of offshore wind capacity, a move widely hailed as a breakthrough for Britain’s energy independence, economic growth, and climate goals. Yet, as the dust settles, a spirited debate has emerged over the timing, cost, and regional impact of these landmark decisions.
Industry observers and government officials alike have been quick to emphasize the scale of the achievement. According to the Department for Energy Security and Net Zero, the fixed-bottom offshore wind projects secured CfDs at an average strike price of around £91 per megawatt-hour (MWh) in 2024 prices—significantly below the bidding cap of £113/MWh and far less than the £147/MWh cost to build and operate a new gas-fired power station. As reported by Energy Voice, this price is also about 40% lower than the alternative cost of new gas generation, a point championed by Energy Secretary Ed Miliband, who called the results "a monumental step towards clean power by 2030."
German energy giant RWE emerged as the dominant player, securing 6.9GW out of the total 8.4GW awarded. RWE’s portfolio includes the 3GW Dogger Bank South complex, 3.1GW Norfolk Vanguard site off the east coast of England, and the 775MW Awel y Môr project in the Irish Sea. SSE, another major winner, landed a 1.4GW portion of the Berwick Bank scheme in Scotland at a slightly lower strike price of £89.49/MWh. Floating wind technology also made inroads, with Blue Gem Wind’s 100MW Erebus project in the Celtic Sea and Copenhagen Infrastructure Partners’ 92.5MW Pentland project off north Scotland both winning CfDs at £216.49/MWh.
Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit (ECIU), described the outcome as "a breakthrough moment in the UK’s energy independence and for stabilising household and industry’s energy bills." Ralston pointed out that wind power had already reduced wholesale electricity prices by about a third in the previous year, squeezing out expensive gas generation and delivering direct benefits to consumers. "Every wind turbine we build means we need less gas from abroad as the North Sea continues its inevitable decline, so we'll be less reliant on the actions of foreign actors like Putin," she added, highlighting the geopolitical and economic stakes involved.
The numbers behind these claims are striking. ECIU analysis showed that, in 2025, the average day-ahead electricity price was around £83/MWh, but without the contribution of British wind farms, it could have soared to £121/MWh. That’s a saving of £38/MWh, or a 31% reduction—real money for households and businesses grappling with volatile energy bills.
Yet for all the fanfare, not everyone is convinced that AR7’s achievements will translate into immediate or universal benefits. Ed Reed, editor at E-FWD, praised the results as "positive for the UK in terms of price and volume," but warned that timing remains "a major problem." Four of the largest projects—Awel y Môr, Berwick Bank, and two phases of Dogger Bank—are not expected to deliver power until 2030–31. "Clean Power 2030 is impossible—and this announcement confirms it. The clean power goal is still alive, but it is now a dream deferred," Reed said, echoing concerns that the UK’s ambitious 2030 targets may slip out of reach without faster project delivery.
Regional disparities have also come under the spotlight. While two Scottish offshore wind projects—Berwick Bank and the Pentland floating wind farm—secured CfDs, none of the winners hailed from the highly anticipated 2022 ScotWind leasing round. This omission has sparked frustration among Scottish business and political leaders. Maggie McGinlay, chief executive of Aberdeen’s ETZ Ltd, welcomed the support for 8.4GW of offshore wind but insisted that "changes needed to be made in time for Allocation Round 8" to ensure Scottish projects can compete on a level playing field. Transmission charges, which make projects north of the border less financially viable, remain a significant barrier, she argued.
Scottish energy secretary Gillian Martin voiced similar concerns, stating, "Whilst it is welcome that two Scottish offshore wind projects have secured a CfD award in AR7, much more could have been achieved at this pivotal moment." Martin called for urgent UK government action to address "unfair and disproportionate transmission charges" and support the deployment of Scotland’s strong project pipeline in future rounds.
On the jobs and investment front, the government estimates that the 12 projects awarded CfDs will support around 1,000 jobs, with the potential to unlock £22 billion in private investment. Trade union GMB welcomed the announcement but cautioned that "the real litmus test will be if it delivers the jobs so often promised and so often fail to materialise." Andy Prendergast, GMB National Secretary, said, "This is a golden opportunity to onshore supply chains and create genuine employment opportunities across the UK. It’s imperative that we take it."
Not all feedback was positive. Some campaigners and industry voices have questioned whether the prices agreed under AR7 truly represent a good deal for consumers. Sam Richards, chief executive of Britain Remade, argued that "the government’s sprint to buy as much wind as possible while it’s expensive will actually lock us into higher electricity prices, making it harder to decarbonise." Maurice Cousins of Net Zero Watch took an even harsher view, calling the results "yet another hammer blow to the British economy" and likening the 20-year fixed contracts to "renewing your mortgage at an eye-watering fixed rate for 20 years, then boasting you have not made your monthly payments any higher."
On the other side, groups like End Fuel Poverty Now maintain that AR7’s outcomes are "exactly the kind of outcome households need after years of volatile bills driven by fossil fuels." Simon Francis, coordinator of the coalition, emphasized that "wind power is already cutting prices by pushing expensive electricity generated by gas-fired power stations off the system and this trend looks set to continue." He did, however, call for "full transparency on how these contracts will affect prices, clear limits on excess profits across the energy industry and electricity pricing reform so the savings from clean power are properly passed through."
Looking forward, the UK now has around 38.4GW of offshore wind generation in its approved project pipeline, with a government target of 43–50GW by 2030. To stay on track, analysts say the next auction round will need to deliver around 7GW of new capacity—a tall order, especially in the face of rising costs, planning delays, and ongoing debates over grid infrastructure.
For now, AR7 stands as both a milestone and a mirror: a testament to the UK’s progress on clean energy, but also a reflection of the challenges that remain. As industry, government, and campaigners alike prepare for the next round, the real test will be whether these ambitious plans can deliver on their promises—not just for the climate, but for households, workers, and communities across the country.
