New offshore wind energy projects providing 8.4 GW of additional capacity - representing more than £22billion of private investment have been announced in Wednesday's Allocation Round 7 (AR7).
The scale of awards demonstrates the UK’s continued ambition on homegrown renewable power and the priority government and industry are placing on accelerating offshore wind while maximising the potential of the UK’s supply chain.
Renewable energy developers participated in a competitive auction to secure Contracts for Difference (CfD), with 12 projects (10 fixed-bottom, 2 floating) being successful. This was enabled by an expected increase in the CfD budget, which has now been doubled to £1.79bn.
OEUK and industry say there is a pathway to Net Zero which prioritises homegrown energy versus imports, delivering renewable energy and the domestic oil and gas that is needed in parallel for decades to come. The UK’s integrated offshore energy supply chain is still suffering from thousands of job losses due to the detrimental effect of government’s fiscal policy for the oil and gas sector. OEUK continues to campaign for reform of the Energy Profits Levy be made in 2026 before more damage is done.
OEUK’s Energy Policy Director, Enrique Cornejo, says: “These awards are an important step for the UK’s power ambitions. Getting projects to final investment requires a joined-up approach across planning, grid, infrastructure, market design, and they should prioritise the domestic supply chain.
“OEUK has previously said 8.4 GW of offshore wind is required to maintain leadership in offshore wind and progress to Clean Power 2030.
“It’s positive to see projects approved in this round across the UK, including in Scotland and Wales, but transmission charges remain a significant issue directly affecting competitiveness and investment decisions.
“Putting the integrated UK supply chain at the heart of delivery, supported by mechanisms such as the Clean Industry Bonus, is critical for investment and building a homegrown energy future. This must be matched by a pragmatic energy narrative that builds on our existing oil and gas industry and rejects an accelerated decline."
While Wednesday's news is a positive step, the UK will still need continued investment in producing homegrown gas and maintaining our gas generation infrastructure, which remains essential for providing the dispatchable power needed to keep the lights on when the wind doesn’t blow and the sun doesn’t shine. Long‑term success for UK energy policy will rely on a balanced approach that builds on our existing industrial strengths.
Wednesday's announcement means there is now around 38.4GW of offshore wind generation in the approved project pipeline, including those projects already in operation and to be built, with the UK targeting 43–50 GW by 2030.
Enrique Cornejo adds: “Ensuring that this round and future allocation rounds strengthen energy security and keep costs down while accelerating the capability and resilience of the UK’s offshore wind sector is critical to achieving a homegrown energy future.
“Putting the UK jobs and the nation’s world class supply chain at the heart of delivery, supported by mechanisms such as the Clean Industry Bonus, is key. This approach must be matched by a pragmatic energy narrative that builds on our existing oil and gas industry and rejects an accelerated policy-driven decline.
"OEUK continues to work with companies across the offshore energy spectrum - oil and gas, wind, carbon capture and storage, and hydrogen - to strengthen industrial resilience, cut costs, and drive a pragmatic, homegrown path to Net Zero in 2050 that delivers industrial and economic growth and a thriving UK."