The UK’s Clean Power 2030 target could be under serious pressure unless at least 8.4GW of new offshore wind capacity is approved in Allocation Round 7 (AR7), according to Offshore Energies UK (OEUK).
The trade body said that record capacity awards are needed in this year’s Contracts for Difference (CfD) auction to recover from shortfalls in recent rounds. Since AR4, only 1.3GW from one fixed and one floating wind project has been awarded due to low strike prices in AR5 and AR6.
Why AR7 is Critical
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Floating wind potential: Can generate 25% more electricity than fixed-bottom projects, with less public opposition and strong alignment to UK supply chains.
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Higher strike prices: AR7 administrative strike prices have been increased by 10% to help support project delivery.
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Planning constraints: Floating wind projects without full planning consent are excluded from AR7, potentially slowing progress.
OEUK wind energy manager Thibaut Cheret stressed the need for balanced strike prices that support project viability while managing costs to consumers. He also urged government investment in domestic supply chains and support schemes like the Clean Industry Bonus, which encourages offshore wind developers to invest in oil and gas transition regions.
“This initiative will help to support highly skilled jobs such as engineers, electricians and welders across the UK,” Cheret said.
With AR7 now open, the outcome could be decisive for the UK’s clean energy transition and its ability to meet the Clean Power 2030 goal.
Source: reNEWS
