GB

UK CfD Allocation Round 6

2024Round 6Pure pricecfd two way10 winners5.3 GW7 won

Also known as: AR6, UK AR6, CfD AR6, UK CfD AR6, Allocation Round 6, Contracts for Difference Allocation Round 6

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Framework Snapshot

AR6 followed the AR5 offshore-wind failure and opened within the continuing UK CfD regime under the Energy Act 2013 / CfD Allocation Regulations 2014, against the 50 GW offshore wind and 5 GW floating-by-2030 policy targets. It drew project pipeline from earlier seabed leasing rounds including Crown Estate Round 3, Crown Estate Round 4, ScotWind and INTOG.

Competition
Bidders (preQ → bid → won)

7

Format

Sealed · single-round

Prize / Award
Award

Contract for Difference

Capacity

5.3 GW

Target delivery

Contract-specific Target Commissioning Window of up to 1 year for offshore wind and floating offshore wind per Allocation Framework Schedule 6. The Generator positions the window so the Target Commissioning Date falls within it, no earlier than the first day of the first Delivery Year and no later than the last day of the final Delivery Year, except that later phases of a Phased Offshore Wind CfD Unit may fall beyond the last day of the final Delivery Year.

Project stage at bidding
post permit
Commercial terms
Price

GBP 54.2–140/MWh (2012 real)

Payment duration

15 years

Indexation

CPI

Risk allocation
Site investigation
developer
Offshore transmission
developer
Negative prices

For any Settlement Unit in an Intermittent Negative Price Period, the Intermittent Difference Amount is zero.

Wake-loss support

—

Curtailment policy

Contractual compensation regime for qualifying curtailment / qualifying partial curtailment under the Standard Terms.

Non-delivery penalties

The 15-year clock runs from the earlier of the Start Date and the last day of the Target Commissioning Window, so delayed commissioning erodes the subsidy period day-for-day. If Operational Conditions Precedent remain unsatisfied by the Longstop Date, LCCC may terminate.

1Prize Composition
Award Components
Contract for Difference(15y)— Specified Expiry Date is the 15th anniversary of the earlier of the Start Date and the last day of the Target Commissioning Window, so late commissioning erodes support term day-for-day.

15-year two-way Contract for Difference offered to successful applicants; AR6 itself confers no site rights, planning status, or grid-build award.

Site Investigation: developer
Transmission Build: developer
Delivery Obligations
Initial Milestone Delivery Date — 18 months after the Agreement Date.

→ Failure to satisfy the relevant milestone requirements by the Milestone Delivery Date can permit a Pre-Start Date Termination Notice.

Milestone Requirement / Project Commitments — By the Milestone Delivery Date, the Generator must submit a Milestone Requirement Notice showing either qualifying project spend or compliance with the Project Commitments, including the applicable Annex 5 commitments.

→ Failure to deliver the Milestone Requirement Notice, or to satisfy a Milestone Requirement by the Milestone Delivery Date, can permit termination before the Start Date.

Operational Conditions Precedent — Operational Conditions Precedent must be fulfilled or waived before the Longstop Date; this includes the Supply Chain Implementation Statement OCP where applicable.

→ If relevant OCPs remain unfulfilled at the end of the Target Commissioning Window, the 15-year support term is shortened; if still unfulfilled by the Longstop Date, LCCC may terminate.

TCW: Contract-specific Target Commissioning Window of up to 1 year for offshore wind and floating offshore wind per Allocation Framework Schedule 6. The Generator positions the window so the Target Commissioning Date falls within it, no earlier than the first day of the first Delivery Year and no later than the last day of the final Delivery Year, except that later phases of a Phased Offshore Wind CfD Unit may fall beyond the last day of the final Delivery Year.

Late delivery: The 15-year clock runs from the earlier of the Start Date and the last day of the Target Commissioning Window, so delayed commissioning erodes the subsidy period day-for-day. If Operational Conditions Precedent remain unsatisfied by the Longstop Date, LCCC may terminate.

Extension grounds: Force Majeure where the Generator satisfies the contractual requirements for extension.; Delay by a Transmission System Operator, Transmission Licensee, Licensed Distributor or OFTO in required reinforcement or connection works, subject to the contractual fault, notice and mitigation conditions.; For Offshore Wind and Onshore Wind only, Ministry of Defence non-confirmation of suitable mitigation measures under a Radar Mitigation Scheme Agreement, subject to the contractual conditions.
2Competition Mechanism
Strike Price(GBP/MWh (2012 prices))↓ Lower wins

Stage trigger: An auction is required where valuation shows the applicable budget and/or capacity constraints are exceeded.

Phases: final binding (binding)
Bid Format

Single-round sealed-bid, pay-as-clear allocation. Applicants submit one standard bid plus up to four Flexible Bids per application; qualifying bids are ranked from lowest to highest Strike Price and selected subject to budget, minima and maxima constraints, including Pot 3 sub-caps that produced separate clearing prices.

sealedsingle-round1 rounds

Reserve: GBP 73 GBP/MWh (2012 prices) — Administrative Strike Price for Offshore Wind in AR6; bids must not exceed the relevant technology- and delivery-year-specific Administrative Strike Price.

Cycle structure: single cycle sealed

Stop: Single sealed-bid submission window followed by one allocation run; selection stops when the next bid or combination would breach the applicable budget, minimum or maximum constraints and no lawful flexible-bid interleaving resolves the breach.

Selection: Walk-the-stack selection from lowest to highest Strike Price, including interleaving of Flexible Bids where permitted.

Selection Envelopes
AR6 overall budget, Delivery Year 2026/27maximum · budget185 GBP million
AR6 overall budget, Delivery Year 2027/28maximum · budget1,555 GBP million
AR6 overall budget, Delivery Year 2028/29maximum · budget1,555 GBP million
AR6 overall budget, Delivery Year 2029/30maximum · budget1,555 GBP million
AR6 overall budget, Delivery Year 2030/31maximum · budget1,370 GBP million
Pot 1 budget, Delivery Years 2026/27-2029/30maximum · budget185 GBP million
Pot 2 budget, Delivery Years 2027/28-2030/31maximum · budget270 GBP million
Pot 3 budget, Delivery Years 2027/28-2030/31maximum · budget1,100 GBP million
Solar PV maximum in Pot 1maximum · budget120 GBP million
Onshore Wind maximum in Pot 1maximum · budget120 GBP million
Remote Island Wind maximum in Pot 1maximum · budget120 GBP million
Tidal Stream minimum in Pot 2minimum · budget15 GBP million
Geothermal maximum in Pot 2maximum · budget8 GBP million
Offshore Wind Permitted Reduction projects maximum in Pot 3maximum · budget1,100 GBP millionown clearing price
New Offshore Wind projects maximum in Pot 3maximum · budget1,100 GBP millionown clearing price
3Qualifying Gates
applicable planning consentsbinary predicate

Applicant must supply the full set of applicable planning consents for the CfD Unit under Regulation 24; this is broader than just DCO or section 36 and includes the relevant development/planning and marine permissions as applicable.

connection agreementbinary predicate

Applicant must supply the required connection agreement(s) under Regulation 25, or a statement that no direct or partial connection applies.

supply chain plan approvalbinary predicate

Secretary of State approval of the Supply Chain Plan. Applies to projects at or above 300 MW across the eligible technologies and to all Floating Offshore Wind projects regardless of size. The formal gate is approval statement issued / not issued.

phased offshore wind total capacity capquantitative maximum≥1500 MW

For a Phased Offshore Wind CfD Unit, the completed unit capacity must not exceed 1,500 MW.

phased offshore wind first phase minimum sharequantitative minimum≥25 percent of completed CfD Unit capacity

For a Phased Offshore Wind CfD Unit, the first phase must represent at least 25% of the total completed unit capacity.

phased offshore wind first phase latest completionbinary predicate

For a Phased Offshore Wind CfD Unit, the first phase must be targeted to complete no later than 31 March of the last applicable Delivery Year.

phased offshore wind final phase gap limitquantitative maximum≥2 years after first-phase Target Commissioning Date

For a Phased Offshore Wind CfD Unit, the Target Commissioning Date of the final phase must be no later than 2 years after the Target Commissioning Date of the first phase.

phased offshore wind pre r4 lease requirementbinary predicate

Phased Offshore Wind CfD Unit treatment is limited to projects deriving from pre-Round-4 lease arrangements; newer lease cohorts are not eligible for phased-offshore-wind treatment.

commissioned generating station exclusionbinary predicate

No application may be made for a CfD Unit that is or is part of a Generating Station that has already been commissioned.

4Scoring Dimensions
Strike Priceprice100%lower wins

Method: quantitative formula

Unit: GBP/MWh (2012 prices)

5Tiebreak Chain
  1. closest envelope fit — Where tied applications cannot all be accepted without breaching the relevant budget / maximum / minimum constraint, the Delivery Body selects the application or combination that comes closest to filling the relevant envelope without breach.
  2. electronic random assignment — If multiple alternatives are equally close to filling the relevant envelope without breach, the Delivery Body chooses at random using the electronic random-assignment process.
6Revenue Mechanism
Instrumentcfd two way
Directionbidirectional
Term15 years
Term StartEarlier of the Start Date and the last day of the Target Commissioning Window.
Indexationcpi — Annual CPI-based indexation under the Standard Terms; strike price is rebased from the 2012 price basis.
Reference PriceIntermittent Market Reference Price for intermittent technologies.
Price ComputationCalculated per Settlement Unit from the applicable day-ahead hourly price indices, with contractual fallback rules if a price source is unavailable.
Rate Cadenceper settlement unit
Payment Cadencemonthly in arrears
Negative Price RuleDeveloper not paid — For any Settlement Unit in an Intermittent Negative Price Period, the Intermittent Difference Amount is zero.
Curtailment CompensationContractual compensation regime for qualifying curtailment / qualifying partial curtailment under the Standard Terms.
7Authorities & Jurisdiction
Department for Energy Security and Net Zeropolicy ownerscheme ownernational

Legal basis: Operates AR6 within the ongoing Energy Act 2013 and Contracts for Difference (Allocation) Regulations 2014 framework; the Secretary of State issues the relevant statutory notices and Supply Chain Plan approval decisions within that regime.

National Grid Electricity System Operator Limiteddelivery bodynational

Legal basis: Delivery Body for AR6 under the Energy Act 2013 / CfD allocation framework; AR6 uses the pre-October-2024 legal name National Grid ESO.

Low Carbon Contracts Company Ltdcounterpartynational

Legal basis: CfD counterparty entering into and administering the awarded Contracts for Difference under the Energy Act 2013 regime.

Gas and Electricity Markets Authorityappeals authoritynational

Legal basis: Statutory 'Authority' determining qualification appeals under the Allocation Framework and Regulations; commonly branded operationally as Ofgem.

Independent Auditorindependent auditornational

Legal basis: Independent auditor appointed under Regulation 36 to audit the allocation process and report to the Secretary of State.

8Process & Timeline
Process Stages
1. Core Parameters — Publication of the core parameters for AR6, including pot structure, delivery years and Administrative Strike Prices.2. Budget Notice — Secretary of State issues the Budget Notice setting the applicable budgets, maxima and minima for the round.3. Application — Applicants submit applications and required evidence, including any applicable planning consents, connection agreements and Supply Chain Plan approval statement.4. Assessment — The Delivery Body assesses applications against the qualification requirements and determines whether they are qualifying applications.5. Appeals — Applicants may seek Non-Qualification Review and then Qualification Appeal to the Authority.6. Valuation — The Delivery Body applies the valuation formula and assesses applications against the applicable budget and constraint structure.7. Budget Revision — If applicable, the Secretary of State may issue a Budget Revision Notice before auction bidding proceeds.8. Sealed Bid — Qualifying applicants submit sealed bids, including any Flexible Bids, during the submission window.9. Auction — The Delivery Body runs the minimum, pot/overall-budget and maximum-constrained allocation processes and applies the tiebreak rules where necessary.10. Audit — The Independent Auditor audits whether the allocation process was run in accordance with the rules.11. Secretary of State Review — Auction results and the auditor report are provided to the Secretary of State for the proceed / rerun / cancel decision.12. Results — Applicants are notified and the AR6 results are published, after which successful applicants may execute CfD contracts with LCCC.
Timeline Events
16 Nov 2023core parameters notice publication[Department for Energy Security and Net Zero]— Publication of the AR6 Core Parameters notification.
4 Dec 2023supply chain plan window open[Department for Energy Security and Net Zero]— Scheduled opening of the AR6 Supply Chain Plan submission window.
1 Mar 2024allocation framework publication[Department for Energy Security and Net Zero]— Publication of the AR6 Allocation Framework.
6 Mar 2024budget notice issued[Department for Energy Security and Net Zero]— Budget Notice issued for AR6 under Regulation 11.
13 Mar 2024standard terms issued[Department for Energy Security and Net Zero]— Issue of the applicable CfD Standard Terms and Conditions for AR6.
27 Mar 2024allocation round open[Department for Energy Security and Net Zero]— AR6 opened.
30 Jul 2024budget revision notice signed[Department for Energy Security and Net Zero]— Budget Revision Notice issued, increasing the overall AR6 budget and the pot budgets.
3 Sept 2024results publication[Department for Energy Security and Net Zero]— Publication of the AR6 outcome; successful applicants were listed as having been offered CfDs.
3 Sept 2024applicant notification[National Grid Electricity System Operator Limited]— Delivery Body notification to applicants of the AR6 outcome.
14 Nov 2024contracts signed announcement[Low Carbon Contracts Company Ltd]— LCCC announced that 130 CfD contracts from AR6 had been signed.
9Market Context
Policy Targets in Force at Open
UK offshore wind capacity target50 GWby 2030
UK floating offshore wind target5 GWby 2030
Regime Events
Sept 2023AR5 zero-offshore-wind-allocationauction outcome failure
Narrative ReferenceAR6 followed the AR5 offshore-wind failure and opened within the continuing UK CfD regime under the Energy Act 2013 / CfD Allocation Regulations 2014, against the 50 GW offshore wind and 5 GW floating-by-2030 policy targets. It drew project pipeline from earlier seabed leasing rounds including Crown Estate Round 3, Crown Estate Round 4, ScotWind and INTOG.
Cross-Axis Structures
Financial Parameter Links
Administrative Strike Price

Bid Strike Price must be less than or equal to the relevant technology- and Delivery-Year-specific Administrative Strike Price.

Axis 2 bid capHard bid cap applied at bid submission.
Relationships & Sources
Upstream Leasing Rounds1
Source Documents12 documents
Auction Results (10)
WinnerSite/LotCategoryCapacityPriceTotal ValueDeliveryTermMechanismSignedStatus
GREEN VOLT OFFSHORE WINDFARM LTDGreen Volt Offshore Windfarm (GV01) | NJ830445Pot 2 | Floating Offshore Wind | Delivery Year 2028/29400 MWGBP 139.93/MWh———auction clearing——
INCH CAPE OFFSHORE LIMITEDInch Cape A | NT394753Pot 3 | Offshore Wind Permitted Reduction | Delivery Year 2027/28177.41 MWGBP 54.23/MWh———auction clearing——
INCH CAPE OFFSHORE LIMITEDInch Cape B | NT394753Pot 3 | Offshore Wind Permitted Reduction | Delivery Year 2027/2888.7 MWGBP 54.23/MWh———auction clearing——
MORAY OFFSHORE WINDFARM (WEST) LIMITEDMoray Offshore Windfarm (West) String 9 | NJ432483Pot 3 | Offshore Wind Permitted Reduction | Delivery Year 2027/2873.5 MWGBP 54.23/MWh———auction clearing——
EAST ANGLIA THREE LIMITEDEA3B | TM097462Pot 3 | Offshore Wind Permitted Reduction | Delivery Year 2027/28158.9 MWGBP 54.23/MWh———auction clearing——
ORSTED HORNSEA PROJECT THREE (UK) LIMITEDHornsea Project Three Offshore Wind Farm AR6 A | TG210034Pot 3 | Offshore Wind Permitted Reduction | Delivery Year 2027/28360 MWGBP 54.23/MWh———auction clearing——
ORSTED HORNSEA PROJECT THREE (UK) LIMITEDHornsea Project Three Offshore Wind Farm AR6 C | TG210034Pot 3 | Offshore Wind Permitted Reduction | Delivery Year 2027/28360 MWGBP 54.23/MWh———auction clearing——
ORSTED HORNSEA PROJECT THREE (UK) LIMITEDHornsea Project Three Offshore Wind Farm AR6 B | TG210034Pot 3 | Offshore Wind Permitted Reduction | Delivery Year 2027/28360 MWGBP 54.23/MWh———auction clearing——
ORSTED HORNSEA PROJECT FOUR LIMITEDHornsea Project Four Offshore Wind Farm | TA042348Pot 3 | Offshore Wind | Delivery Year 2028/292,400 MWGBP 58.87/MWh———auction clearing——
EAST ANGLIA TWO LIMITEDEast Anglia Two, Phase 1 | TM415611Pot 3 | Offshore Wind | Delivery Year 2028/29963.07 MWGBP 58.87/MWh———auction clearing——
UK CfD Allocation Round 6 — AgentZero | AgentZero