The UK government has confirmed that the seventh Contracts for Difference (CfD) Allocation Round (AR7) will open to applications on 7 August 2025, running through 27 August. This round supports renewable energy developers vying for government-backed price guarantees to accelerate clean power generation delivery.
Key Dates & Structure
- Application Window: 7–27 August 2025.
- Results Announcement:
- Offshore wind (fixed and floating): expected between December 2025 and February 2026.
- Onshore wind, solar, and remote island projects: similar timelines.
- Clean Industry Bonus (CIB): Results and guidance to be published in June 2025 ahead of AR7.
- Supporting Documents: Final CfD Standard Terms, contract templates, administrative strike prices, and pot structures will be released by July 2025, enabling developers to fine-tune bids.
AR7 Reforms & Focus
AR7 introduces several progressive reforms:
- Separate Auction Tracks: Offshore wind now follows its own timeline, allowing swifter result confirmation.
- Relaxed Planning Requirements: The government is consulting on allowing fixed-bottom offshore wind projects without full planning consent to compete.
- Clean Industry Bonus: Eligible projects investing in British supply chains can earn extra CfD revenue, boosting UK manufacturing.
These reforms were outlined in the Clean Power 2030 Action Plan and refined through stakeholder consultations.
🌱 Why AR7 Matters
- Supporting National Targets: The round is critical to delivering the UK’s Clean Power by 2030 goals, including 43–50 GW of offshore wind .
- Boosting Competition: The offshore wind tender structure and planning relaxations aim to broaden market participation and drive down bid prices via competition .
- Stimulating Domestic Supply Chains: The CIB encourages local manufacturing and job creation in the clean energy sector .
- Regulatory Certainty: Locking in timelines, budgets, and terms gives investors much-needed confidence ahead of project delivery .
Points to Watch
- Planning Consent Controversy: Some developers support the relaxation of planning consents; others warn it may deter investors and overload the auction with non‑shovel‑ready projects.
- Final Strike Prices & Budget: Bidders eagerly await the Budget Notice and Administrative Strike Prices—published later in the process, to finalise bids.
- Post-Auction Timeline: Contracts are expected to be signed between January and March 2026, marking a swift transition from allocation to implementation.
AR7 represents a major milestone in the UK’s journey toward a decarbonised electricity system. With generous support schemes like the Clean Industry Bonus, targeted regulatory reforms, and a streamlined timeline, this round could unlock significant new capacity in offshore wind, solar, and onshore wind.
