• 3.2 GW of Solar and 900 MW of onshore wind, at a competitive strike price of £50.07 / MWh. 

• 3.3 GW of Offshore wind including world’s largest offshore wind project, at a strike price of £58.87 / MWh. 

• Despite tidal and floating offshore wind projects included thanks to ring fencing budget in the auction, further technology diversity should be supported.  

The REA (Association for Renewable Energy and Clean Technology) has welcomed today’s announcement of record sums secured in the latest round of government auctions for renewable energy. The £1.5 billion auction will back 131 projects, including wind farms, solar farms, and tidal energy projects. This comes after the new government raised the funding to seven times the amount provided last year. 

Whilst it’s encouraging to see this Government act quickly to address the issues from the last auction round, which attracted no new offshore wind projects, the REA is urging this administration to be even more ambitious. The scope of the CfD mechanism should be adapted so that a wider mix of technologies, such as geothermal and existing assets coming to the end of their generation contracts, are able to share in the success of the CfD. This will ensure the UK develops a strong, varied energy mix that is not reliant on a single technology. Also, if Labour is to deliver on its promise to achieve Clean Power by 2030, deployment dates between 2026 – 2029 highlight the limited window open to contract new generation, requiring a clear and regular timetable for future auctions. 

Mark Sommerfeld, Deputy Director of Policy, REA (Association for Renewable Energy and Clean Technology), said: 

“Today’s CfD Auction results underscore the critical importance of investing in homegrown renewable energy. By securing record levels of solar and offshore wind at competitive strike prices, the UK is advancing towards a secure, decarbonised, and affordable energy system. This progress will deliver real returns, creating jobs and shielding consumers from the volatility of international fossil fuel markets that have been the root of the energy crisis. 

Along with celebrating these results, we also highlight the importance of looking to future CfD allocation rounds. With delivery dates for projects in this auction already going out to 2029, it is a reminder of the limited time available to contract the generation needed to meet the Government’s 2030 Clean Power Mission. Additionally, not all the technologies required for net zero have fully benefited from the CfD framework. For instance, geothermal power still lacks robust support, and there is also an opportunity to extend the life of existing low-carbon generation assets nearing the end of their current contracts through the CfD, preventing the premature loss of critical renewable generation.”