UK CfD Allocation Round 7
Also known as: AR7, Allocation Round 7, CfD Allocation Round 7, Contracts for Difference Allocation Round 7, UK AR7, UK CfD AR7
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AR7 opened against the combined pressure of the UK's 50 GW offshore-wind target, 5 GW floating target and the Labour government's Clean Power 2030 mission, after AR5's zero-offshore-wind outcome and the AR6/Hornsea 4 episode exposed that the old CfD design was no longer reliably financeable. The round therefore sits inside the Targeted Reform of Allocation Rounds package: 20-year contracts, the new Clean Industry Bonus layer, and the 2025 amendment enabling pre-auction Anonymised Bid Information disclosure to the Secretary of State. In practical terms, AR7 was designed as a capacity-recovery round rather than a pure subsidy-minimisation round, with a mid-process Pot 3 budget uplift used to unlock a much larger fixed-bottom offshore-wind award volume.
8
Sealed · single-round
20-year two-way CfD contract + CIB Extra Investment Reward entitlement
8.4 GW
For Offshore Wind and Floating Offshore Wind, the Target Commissioning Window is up to one year. The Generator positions the window so that the Target Commissioning Date falls within it and, for the first phase, no earlier than the first day of the first Delivery Year; later phases of phased offshore wind units are expressly excepted from the general placement rule.
GBP 64.2–155/MWh (2012 real)
20 years
CPI
For intermittent technologies, no top-up payment is made for Settlement Units forming part of a negative-pricing period; there is no hours threshold.
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Curtailment compensation is available only for qualifying curtailment / qualifying partial curtailment under the Standard Terms Part 11 formula.
The 20-year support term runs from the earlier of the Start Date and the end of the Target Commissioning Window, so late commissioning erodes subsidy term day-for-day; failure to satisfy Operational Conditions Precedent by the Longstop Date can trigger pre-Start termination by LCCC.
Contract for Difference revenue-support contract with Low Carbon Contracts Company Ltd for Offshore Wind and Floating Offshore Wind awarded through AR7. The contract term for these technologies is 20 years rather than the 15-year term used in earlier rounds such as AR6.
Additional Clean Industry Bonus payment entitlement for generators whose CIB extra proposals succeed in the separate CIB allocation and are successfully delivered, paid by the CfD counterparty alongside the CfD framework.
→ If the Generator fails to deliver the Milestone Requirement Notice by the Milestone Delivery Date, or neither milestone route has been fulfilled by that date, the CfD Counterparty may terminate.
→ Without confirmation of minimum-standard delivery, a Facility CIB Implementation Statement is not issued and CIB Minimum Standard Performance Amount mechanics apply; undelivered CIB extra proposals do not earn CIB extra reward payments.
→ If Operational Conditions Precedent are not fulfilled or waived by the Longstop Date, the CfD Counterparty may terminate the contract; if commissioning is late, the 20-year support clock still runs from the earlier of Start Date and Target Commissioning Window end, eroding subsidy term day-for-day.
TCW: For Offshore Wind and Floating Offshore Wind, the Target Commissioning Window is up to one year. The Generator positions the window so that the Target Commissioning Date falls within it and, for the first phase, no earlier than the first day of the first Delivery Year; later phases of phased offshore wind units are expressly excepted from the general placement rule.
Late delivery: The 20-year support term runs from the earlier of the Start Date and the end of the Target Commissioning Window, so late commissioning erodes subsidy term day-for-day; failure to satisfy Operational Conditions Precedent by the Longstop Date can trigger pre-Start termination by LCCC.
Single-round sealed-bid, pay-as-clear CfD auction. Every application submits one binding sealed bid for its original target dates and capacity; in addition, non-fixed-bottom applications may submit up to four Flexible Bids, while Fixed-Bottom Offshore Wind applications may not submit Flexible Bids.
Stop: Auction closes once the ranked sealed-bid walk and any applicable interleaving/tiebreak logic are exhausted; no further bid rounds occur.
Selection: Bids are ranked from lowest Strike Price to highest and selected subject to the applicable monetary budgets and Pot 3 Maxima.
Applicants must satisfy the Regulation 24 planning-consent requirement for the CfD Unit. AR7 adds an alternative pathway for Unconsented Fixed-Bottom Offshore Wind: at application time no Relevant Applicable Planning Consent may have been refused unless formally overturned on appeal, and a signed Schedule 7 director declaration must be submitted by the Working Day before Submission Closing Date.
Applicants must provide the signed and dated connection documentation required by Regulation 25 and the application guidance, including any Private Network Use Agreement where relevant.
AR7 requires each CfD Unit to obtain a Clean Industry Bonus Statement before entering the main CfD round. Minimum standard investment thresholds are at least GBP 100 million per GW for fixed-bottom offshore wind and GBP 50 million per GW for floating offshore wind, invested in qualifying tangible assets meeting Criterion 1 and/or Criterion 2 requirements.
Inherited structural qualification rules include phased offshore wind constraints (maximum 1,500 MW total, first phase at least 25%, first phase timing, and maximum two-year spacing between first and final phase), exclusion of previously commissioned generating stations unless qualifying repowered units, and AR1-AR6 surrendered-capacity rebid exclusion.
For Pot 3, Offshore Wind applicants must connect in GUS Tariff Zones 13-27 or DNO areas 10-16 or 19-23, while Offshore Wind Scotland applicants must connect in GUS Tariff Zones 1-12 or DNO areas 17-18. This gate determines which of the two Pot 3 Maxima the bid competes against.
Method: quantitative formula
Unit: GBP/MWh (2024 prices)
Method: quantitative formula
Unit: points (0-100)
Method: quantitative formula
Unit: points (0-100)
- closest envelope fit — For the main CfD auction, equal-price applications that cannot all be accepted are resolved by choosing the application or combination that comes closest to fulfilling the relevant Monetary Pot or Overall Budget in the final year of the Budget Profile without exceeding the applicable constraints.
- electronic random assignment — If tied main-auction applications or combinations remain equally close after the budget-fit test, NESO resolves them by electronic random assignment.
- same score same criterion higher raw score — For CIB extra proposals, if two or more proposals achieve the same total score and meet the same criterion, the proposal with the higher raw score ranks above the lower raw score.
- lower requested cib support wins — If CIB extra proposals remain tied after the raw-score test, the proposal requiring less requested CIB revenue support ranks above the proposal requiring more.
- electronic random assignment — If CIB extra proposals remain tied after the prior CIB tiebreakers, DESNZ resolves the tie by electronic random draw.
Legal basis: Energy Act 2013; Contracts for Difference (Allocation) Regulations 2014 as amended, including the Sustainable Industry Rewards Regulations 2024 and 2025 amendments used in AR7.
Legal basis: Delivery Body under section 12(1) of the Energy Act 2013 and the AR7 Allocation Framework.
Legal basis: CfD Counterparty under the Energy Act 2013 and AR7 contract documents.
Legal basis: Qualification review / appeal route under the Allocation Regulations and AR7 Allocation Framework.
Legal basis: Round auditor under the CfD framework including Regulation 36 and AR7 Rule 13.3.
Legal basis: Scheme scrutiny under the Subsidy Control Act 2022; AR7 report issued 16 October 2025.
Bid Strike Price must be less than or equal to the technology-specific Administrative Strike Price (£113/MWh for Offshore Wind, £271/MWh for Floating Offshore Wind, both in 2024 prices) per allocation-framework Rule 12.1(c)(i). Pot and Price Notice section 'Re-basing Administrative Strike Prices' provides the CPI conversion factor 0.7177 from 2024 back to 2012 prices for historical-series continuity.
UK CfD Allocation Round 7a (AR7a), the parallel non-offshore-wind round sharing the Pot and Price Notice, Allocation Framework and Application Window Notice but with separate budget notices and a separate sealed-bid window.
| Winner | Site/Lot | Category | Capacity | Price | Total Value | Delivery | Term | Mechanism | Signed | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| AWEL Y MÔR OFFSHORE WIND FARM LIMITED | Awel y Môr Offshore Wind Farm A | Project Location: SJ015735; Region: Wales; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 2; Strike Price (2024 prices): 91.20 GBP/MWh | 775 MW | GBP 65.45/MWh | — | 2030 | — | auction clearing | — | — |
| BERWICK BANK B LIMITED | Berwick Bank Phase B | Project Location: NT730745; Region: Scotland; Technology Type: Offshore Wind-Scotland; Pot: 3; No. of Phases: 3; Strike Price (2024 prices): 89.49 GBP/MWh | 1,380 MW | GBP 64.23/MWh | — | 2030 | — | auction clearing | — | — |
| RWE RENEWABLES UK DOGGER BANK SOUTH (EAST) LIMITED | Dogger Bank South East CfD Unit A | Project Location: TA044349; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 3; Strike Price (2024 prices): 91.20 GBP/MWh | 1,500 MW | GBP 65.45/MWh | — | 2030 | — | auction clearing | — | — |
| RWE RENEWABLES UK DOGGER BANK SOUTH (WEST) LIMITED | Dogger Bank South West CfD Unit A | Project Location: TA044349; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 3; Strike Price (2024 prices): 91.20 GBP/MWh | 1,500 MW | GBP 65.45/MWh | — | 2030 | — | auction clearing | — | — |
| NORFOLK VANGUARD EAST LIMITED | Norfolk Vanguard East CFD Unit A | Project Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 2; Strike Price (2024 prices): 91.20 GBP/MWh | 1,380 MW | GBP 65.45/MWh | — | 2029 | — | auction clearing | — | — |
| NORFOLK VANGUARD EAST LIMITED | Norfolk Vanguard East CFD Unit B | Project Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh | 90 MW | GBP 65.45/MWh | — | 2028 | — | auction clearing | — | — |
| NORFOLK VANGUARD EAST LIMITED | Norfolk Vanguard East CFD Unit C | Project Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh | 75 MW | GBP 65.45/MWh | — | 2028 | — | auction clearing | — | — |
| NORFOLK VANGUARD WEST LIMITED | Norfolk Vanguard West CFD Unit A | Project Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 2; Strike Price (2024 prices): 91.20 GBP/MWh | 1,380 MW | GBP 65.45/MWh | — | 2028 | — | auction clearing | — | — |
| NORFOLK VANGUARD WEST LIMITED | Norfolk Vanguard West CFD Unit B | Project Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh | 90 MW | GBP 65.45/MWh | — | 2028 | — | auction clearing | — | — |
| NORFOLK VANGUARD WEST LIMITED | Norfolk Vanguard West CFD Unit C | Project Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh | 75 MW | GBP 65.45/MWh | — | 2028 | — | auction clearing | — | — |
| BLUE GEM WIND LIMITED | Erebus | Project Location: SM935014; Region: Wales; Technology Type: Floating Offshore Wind; Pot: 4; No. of Phases: 1; Strike Price (2024 prices): 216.49 GBP/MWh | 100 MW | GBP 155.37/MWh | — | 2029 | — | auction clearing | — | — |
| HIGHLAND WIND LIMITED | Pentland Floating Offshore Wind Farm | Project Location: NC981666; Region: Scotland; Technology Type: Floating Offshore Wind; Pot: 4; No. of Phases: 2; Strike Price (2024 prices): 216.49 GBP/MWh | 92.5 MW | GBP 155.37/MWh | — | 2029 | — | auction clearing | — | — |