GB

UK CfD Allocation Round 7

2025Round 73 scoring criteriacfd two way12 winners8.4 GW8 won

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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Framework Snapshot

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.

Competition
Bidders (preQ → bid → won)

8

Format

Sealed · single-round

Prize / Award
Award

20-year two-way CfD contract + CIB Extra Investment Reward entitlement

Capacity

8.4 GW

Target delivery

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.

Project stage at bidding
post permit
Commercial terms
Price

GBP 64.2–155/MWh (2012 real)

Payment duration

20 years

Indexation

CPI

Risk allocation
Site investigation
developer
Offshore transmission
developer
Negative prices

For intermittent technologies, no top-up payment is made for Settlement Units forming part of a negative-pricing period; there is no hours threshold.

Wake-loss support

Curtailment policy

Curtailment compensation is available only for qualifying curtailment / qualifying partial curtailment under the Standard Terms Part 11 formula.

Non-delivery penalties

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.

1Prize Composition
Award Components
20-year two-way CfD contract(20y)Specified Expiry Date is the 20th anniversary of the earlier of the Start Date and the last day of the Target Commissioning Window.

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.

CIB Extra Investment Reward entitlementContingent parallel payment stream linked to successful CIB extra proposals and delivery under the Sustainable Industry Rewards / CIB framework.

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.

Site Investigation: developer
State pre-investigated site: No
Transmission Build: developer
Delivery Obligations
Milestone Requirement / Initial Milestone Delivery DateMilestone Requirement Notice must be given no later than the Milestone Delivery Date, which for AR7 offshore wind contracts is 18 months after the Agreement Date.

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.

Deliver CIB minimum-standard and extra-proposal commitmentsCIB investments must be made by the CfD Unit's expected CfD Start Date, with delivery evidenced through the CIB implementation process and related notices.

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.

Operational Conditions PrecedentOperational Conditions Precedent must be fulfilled or waived before the Longstop Date.

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.

Extension grounds: Force Majeure.; Delay by a Transmission System Operator, Transmission Licensee, Licensed Distributor or OFTO in required reinforcement or connection works.; For Offshore Wind or Onshore Wind only, Ministry of Defence non-confirmation of Radar Mitigation Scheme mitigation measures.; For Offshore Wind only excluding Floating Offshore Wind, Relevant Applicable Planning Consent not having been granted, being quashed, or being refused before the Milestone Delivery Date, including delay attributable to Relevant Court Proceedings.
2Competition Mechanism
Strike Price(GBP/MWh (2024 prices))↓ Lower wins
Phases: final binding (binding)
Bid Format

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.

sealedsingle-round1 rounds
Cycle structure: single cycle sealed

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.

Selection Envelopes
Overall Budget 2028/29maximum · contract budget1,970 GBP million (2024 prices)
Overall Budget 2029/30maximum · contract budget1,970 GBP million (2024 prices)
Overall Budget 2030/31maximum · contract budget1,970 GBP million (2024 prices)
Overall Budget 2031/32maximum · contract budget1,970 GBP million (2024 prices)
Overall Budget 2032/33maximum · contract budget1,790 GBP million (2024 prices)
Pot 3 budget 2028/29maximum · pot budget1,790 GBP million (2024 prices)
Pot 3 budget 2029/30maximum · pot budget1,790 GBP million (2024 prices)
Pot 3 budget 2030/31maximum · pot budget1,790 GBP million (2024 prices)
Pot 3 budget 2031/32maximum · pot budget1,790 GBP million (2024 prices)
Pot 3 budget 2032/33maximum · pot budget1,790 GBP million (2024 prices)
Pot 4 budget 2028/29maximum · pot budget180 GBP million (2024 prices)
Pot 4 budget 2029/30maximum · pot budget180 GBP million (2024 prices)
Pot 4 budget 2030/31maximum · pot budget180 GBP million (2024 prices)
Pot 4 budget 2031/32maximum · pot budget180 GBP million (2024 prices)
Offshore Wind projects in Pot 3maximum · capacity maximum30 GWown clearing price
Offshore Wind Scotland projectsmaximum · capacity maximum30 GWown clearing price
3Qualifying Gates
Applicable planning consents / unconsented fixed-bottom offshore wind pathwaybinary predicate

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.

Connection agreementsbinary predicate

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.

CIB Statement / minimum standard metquantitative minimum

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.

Structural attribute constraintsbinary predicate

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.

Connection-zone qualification / Pot 3 Maximum assignmentrange

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.

4Scoring Dimensions
Strike Priceprice100%lower wins

Method: quantitative formula

Unit: GBP/MWh (2024 prices)

Criterion 1 - Investment in shorter supply chainssupply_chainhigher winsparallel scalar

Method: quantitative formula

Unit: points (0-100)

Criterion 2 - Investment in more sustainable means of productionenvironmentalhigher winsparallel scalar

Method: quantitative formula

Unit: points (0-100)

5Tiebreak Chain
  1. closest envelope fitFor 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.
  2. electronic random assignmentIf tied main-auction applications or combinations remain equally close after the budget-fit test, NESO resolves them by electronic random assignment.
  3. same score same criterion higher raw scoreFor 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.
  4. lower requested cib support winsIf CIB extra proposals remain tied after the raw-score test, the proposal requiring less requested CIB revenue support ranks above the proposal requiring more.
  5. electronic random assignmentIf CIB extra proposals remain tied after the prior CIB tiebreakers, DESNZ resolves the tie by electronic random draw.
6Revenue Mechanism
Instrumentcfd two way
Directionbidirectional
Term20 years
Term StartThe contract becomes effective on the Agreement Date, and for Offshore Wind and Floating Offshore Wind the Specified Expiry Date is the 20th anniversary of the earlier of the Start Date and the last day of the Target Commissioning Window.
Indexationcpi — Strike prices are bid and cleared in 2024 prices and CPI-indexed annually under the Standard Terms.
Reference PriceIntermittent Market Reference Price for settlement; allocation valuation also uses published Offshore Wind reference-price assumptions in the Allocation Framework appendices.
Price ComputationPer-settlement-unit intermittent market reference price methodology under the Standard Terms; top-up paid when strike price exceeds market reference price and payback when market reference price exceeds strike price.
Rate Cadenceper settlement unit
Payment Cadencedaily
Negative Price RuleDeveloper not paid — For intermittent technologies, no top-up payment is made for Settlement Units forming part of a negative-pricing period; there is no hours threshold.
Curtailment CompensationCurtailment compensation is available only for qualifying curtailment / qualifying partial curtailment under the Standard Terms Part 11 formula.
7Authorities & Jurisdiction
Department for Energy Security and Net Zeropolicy ownerscheme ownernational

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.

National Energy System Operatordelivery bodygrid system operatornational

Legal basis: Delivery Body under section 12(1) of the Energy Act 2013 and the AR7 Allocation Framework.

Low Carbon Contracts Company Ltdcounterpartynational

Legal basis: CfD Counterparty under the Energy Act 2013 and AR7 contract documents.

Gas and Electricity Markets Authorityappeals authoritynational

Legal basis: Qualification review / appeal route under the Allocation Regulations and AR7 Allocation Framework.

Independent Auditorindependent auditornational

Legal basis: Round auditor under the CfD framework including Regulation 36 and AR7 Rule 13.3.

Competition and Markets Authority — Subsidy Advice Unitstate aid regulatornational

Legal basis: Scheme scrutiny under the Subsidy Control Act 2022; AR7 report issued 16 October 2025.

8Process & Timeline
Process Stages
1. CIB application window — Eligible generators submit separate CIB applications per CfD Unit, including minimum-standard proposals and any extra proposals.2. CIB assessment and statement issuance — DESNZ assesses minimum-standard and extra proposals, resolves any review / dispute steps within the CIB framework, and issues CIB Statements or refusal notices; a CIB Statement is required for entry to the main AR7 round.3. Core AR7 framework and Pot and Price Notice published — DESNZ publishes the AR7 / AR7a Allocation Framework and Pot and Price Notice setting pot structure, delivery years and Administrative Strike Prices.4. Application Window Notice issued — DESNZ issues the formal AR7 Application Window Notice under Regulation 4A.5. Main CfD application window — Applicants submit AR7 CfD applications to NESO during the statutory application window.6. Qualification assessment — NESO determines whether applications are Qualifying Applications under the Allocation Regulations, Allocation Framework and supporting schedules.7. Reviews and appeals — Applicants may pursue non-qualification review and qualification appeal routes under the AR7 framework and regulations.8. Application valuation — NESO values qualifying applications using the published valuation formula and input assumptions before budgeted allocation begins.9. Contract Budget Notice issued — DESNZ issues the Contract Budget Notice setting the initial monetary envelopes and technical Pot 3 Maxima.10. Notice of Auction issued — NESO issues the Notice of Auction to qualifying applicants and specifies the sealed-bid window.11. Sealed-bid window — Applicants submit binding sealed bids; Fixed-Bottom Offshore Wind cannot submit Flexible Bids, while Floating Offshore Wind and other non-fixed-bottom technologies may submit them within Rule 12 limits.12. Anonymised Bid Information transmitted — After sealed-bid close, NESO sends Auditor-assured Anonymised Bid Information for Fixed-Bottom Offshore Wind to the Secretary of State under Rule 13.13. Budget Revision Notice — Using the Rule 13 disclosure loop, the Secretary of State may revise the budget upward before auction run; AR7 used this step to increase Pot 3 materially.14. Auction run — NESO runs the pay-as-clear selection process against the revised budgets and the two technical Pot 3 Maxima that generate separate clearing prices for Offshore Wind and Offshore Wind Scotland.15. Independent audit — Independent Auditor audits valuation / allocation outputs and the Rule 13 assurance process.16. Secretary of State review — Post-auction review occurs before results publication under the CfD governance process.17. Results publication — DESNZ publishes AR7 results and NESO notifies applicants.18. CfD contract signature — Successful generators sign their CfD contracts with LCCC.
Timeline Events
12 Nov 2024allocation round established[Department for Energy Security and Net Zero] AR7 was formally established for Offshore Wind and Floating Offshore Wind.
22 Jan 2025cib framework revised[Department for Energy Security and Net Zero] Corrected CIB Allocation Framework published.
13 Feb 2025cib application window open[Department for Energy Security and Net Zero] Clean Industry Bonus application window opened.
14 Apr 2025cib application window close[Department for Energy Security and Net Zero] Clean Industry Bonus application window closed.
7 May 2025cib budget notice[Department for Energy Security and Net Zero] Final Budget Notice for the Clean Industry Bonus issued.
23 Jul 2025pot and price notice issued[Department for Energy Security and Net Zero] Pot and Price Notice issued for AR7 / AR7a, including Administrative Strike Prices and pot structure.
23 Jul 2025allocation framework published[Department for Energy Security and Net Zero] AR7 / AR7a Contract Allocation Framework published.
24 Jul 2025standard terms issued[Secretary of State for Energy Security and Net Zero] CfD Standard Terms Notice and related contract documents issued for AR7.
24 Jul 2025application window notice issued[Department for Energy Security and Net Zero] Application Window Notice issued for AR7 and AR7a.
7 Aug 2025application window open[National Energy System Operator] AR7 application window opened.
27 Aug 2025application window close[National Energy System Operator] AR7 application window closed.
16 Oct 2025scheme scrutiny report[Competition and Markets Authority — Subsidy Advice Unit] CMA Subsidy Advice Unit report on the AR7 scheme published.
27 Oct 2025contract budget notice issued[Department for Energy Security and Net Zero] Initial Contract Budget Notice issued for AR7.
27 Oct 2025notice of auction issued[National Energy System Operator] Notice of Auction issued to qualifying AR7 applicants; date is supported by secondary sources because the bilateral notice is not publicly available.
11 Nov 2025sealed bid window open[National Energy System Operator] AR7 sealed-bid window opened; date is secondary-sourced because the Notice of Auction is not in the public primary corpus.
17 Nov 2025sealed bid window close[National Energy System Operator] AR7 sealed-bid window closed; date is secondary-sourced because the Notice of Auction is not in the public primary corpus.
24 Nov 2025anonymised bid info sent to sossdeadline_proxy[National Energy System Operator] Rule 13 required Anonymised Bid Information for Fixed-Bottom Offshore Wind to be sent to the Secretary of State within 5 Working Days of sealed-bid close; actual transmission date is not public, so this records the inferred latest deadline date.
19 Dec 2025budget revision notice signed[Department for Energy Security and Net Zero] Budget Revision Notice signed, increasing Pot 3 from GBP 900 million to GBP 1,790 million.
23 Dec 2025budget revision effective[Department for Energy Security and Net Zero] Budget Revision Notice took effect.
14 Jan 2026results publication[Department for Energy Security and Net Zero] AR7 results published; NESO notified applicants on the same date.
25 Mar 2026contracts signed[Low Carbon Contracts Company Ltd] LCCC signed AR7 CfD contracts with successful generators.
9Market Context
Policy Targets in Force at Open
UK offshore wind capacity target50 GWby 2030
UK floating offshore wind target5 GWby 2030
Clean Power 2030 missionby 2030
Regime Events
Sept 2023AR5 zero-offshore-wind-allocationauction outcome failure
Sept 2024UK AR6 results publicationauction results publication
CfD Targeted Reform of Allocation Rounds (TRA) packagepolicy reform package
SI 2025/903 amending Regulation 54(3)statutory instrument amendment
Sustainable Industry Rewards Regulations 2024statutory instrument
Narrative ReferenceAR7 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.
Cross-Axis Structures
Financial Parameter Links
Administrative Strike Price

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.

Axis 2 bid capHard bid cap applied at bid submission; bids exceeding the ASP are rejected. Note that Rule 13 anonymised bid information disclosure to SoS effectively supersedes ASP as price-discovery mechanism for Fixed-Bottom OSW per the pot-and-price-notice — the ASP remains a technical backstop for NESO auction mechanics.
Relationships & Sources
Paired Auctions

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.

related
Preceded By1 auction
Upstream Leasing Rounds1
Source Documents12 documents
Auction Results (12)
WinnerSite/LotCategoryCapacityPriceTotal ValueDeliveryTermMechanismSignedStatus
AWEL Y MÔR OFFSHORE WIND FARM LIMITEDAwel y Môr Offshore Wind Farm AProject Location: SJ015735; Region: Wales; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 2; Strike Price (2024 prices): 91.20 GBP/MWh775 MWGBP 65.45/MWh2030auction clearing
BERWICK BANK B LIMITEDBerwick Bank Phase BProject Location: NT730745; Region: Scotland; Technology Type: Offshore Wind-Scotland; Pot: 3; No. of Phases: 3; Strike Price (2024 prices): 89.49 GBP/MWh1,380 MWGBP 64.23/MWh2030auction clearing
RWE RENEWABLES UK DOGGER BANK SOUTH (EAST) LIMITEDDogger Bank South East CfD Unit AProject Location: TA044349; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 3; Strike Price (2024 prices): 91.20 GBP/MWh1,500 MWGBP 65.45/MWh2030auction clearing
RWE RENEWABLES UK DOGGER BANK SOUTH (WEST) LIMITEDDogger Bank South West CfD Unit AProject Location: TA044349; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 3; Strike Price (2024 prices): 91.20 GBP/MWh1,500 MWGBP 65.45/MWh2030auction clearing
NORFOLK VANGUARD EAST LIMITEDNorfolk Vanguard East CFD Unit AProject Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 2; Strike Price (2024 prices): 91.20 GBP/MWh1,380 MWGBP 65.45/MWh2029auction clearing
NORFOLK VANGUARD EAST LIMITEDNorfolk Vanguard East CFD Unit BProject Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh90 MWGBP 65.45/MWh2028auction clearing
NORFOLK VANGUARD EAST LIMITEDNorfolk Vanguard East CFD Unit CProject Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh75 MWGBP 65.45/MWh2028auction clearing
NORFOLK VANGUARD WEST LIMITEDNorfolk Vanguard West CFD Unit AProject Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 2; Strike Price (2024 prices): 91.20 GBP/MWh1,380 MWGBP 65.45/MWh2028auction clearing
NORFOLK VANGUARD WEST LIMITEDNorfolk Vanguard West CFD Unit BProject Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh90 MWGBP 65.45/MWh2028auction clearing
NORFOLK VANGUARD WEST LIMITEDNorfolk Vanguard West CFD Unit CProject Location: TF889106; Region: England; Technology Type: Offshore Wind; Pot: 3; No. of Phases: 1; Strike Price (2024 prices): 91.20 GBP/MWh75 MWGBP 65.45/MWh2028auction clearing
BLUE GEM WIND LIMITEDErebusProject Location: SM935014; Region: Wales; Technology Type: Floating Offshore Wind; Pot: 4; No. of Phases: 1; Strike Price (2024 prices): 216.49 GBP/MWh100 MWGBP 155.37/MWh2029auction clearing
HIGHLAND WIND LIMITEDPentland Floating Offshore Wind FarmProject Location: NC981666; Region: Scotland; Technology Type: Floating Offshore Wind; Pot: 4; No. of Phases: 2; Strike Price (2024 prices): 216.49 GBP/MWh92.5 MWGBP 155.37/MWh2029auction clearing