The UK just pulled off one of its most consequential offshore wind auctions yet – delivering massive volumes of new capacity at prices that undercut gas.
In its latest offshore wind allocation round (AR7), the UK awarded a record 8.4 gigawatts (GW) of offshore wind capacity, making it the largest-ever offshore wind auction in Europe. That includes 8.2 GW of bottom‑fixed projects and just under 200 megawatts (MW) of floating wind, enough clean power to supply the equivalent of nearly 10 million homes.
And it came in cheap. Thanks to intense competition, the average strike prices landed at £91.20 per megawatt-hour (MWh) in England and Wales and £89.49/MWh in Scotland. That’s well below the cost of building and running new fossil fuel or nuclear power in the UK.
For context, new gas plants in the UK are estimated to cost approximately £147/MWh, while new nuclear power plants come in at around £124/MWh. In other words, offshore wind from this auction is roughly 40% cheaper than gas and almost 30% cheaper than nuclear.
The 8.4 GW of new offshore wind capacity will save consumers nearly £1.7 billion a year compared with relying on gas-fired power.
A highly competitive auction
AR7 was one of the most competitive offshore wind auctions ever held in Europe. A record 19 projects with a combined potential capacity of 24 GW were eligible to bid, driving prices down and underscoring just how far offshore wind costs have fallen.
In total, the auction awarded contracts to six bottom‑fixed offshore wind projects and two floating wind projects. The 192 MW of floating wind awarded may sound small, but it’s an important step toward advancing commercial‑scale floating wind – a technology seen as critical for deeper waters where traditional turbines won’t work.
The British government says the auction will unlock around £22 billion in private investment and support roughly 7,000 jobs across the UK.
RWE walks away the big winner
The clear standout in this round was German energy giant RWE, which secured contracts for nearly 7 GW of offshore wind capacity – by far the largest share of the auction.
UK Energy Secretary Ed Miliband said, “With these results, Britain is taking back control of our energy sovereignty. This is a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators.
“It is a monumental step toward clean power by 2030, and the price secured in this auction is 40% lower than the alternative cost of building and operating a new gas plant.”
Whether you look at it through the lens of energy security, consumer savings, or climate goals, AR7 sends a pretty clear message: Offshore wind is one of the UK’s cheapest ways to build new large‑scale power.
Read more: UK wind farms generate a record 22.7 GW of power on a single day
If you’ve ever considered going solar, make it easy by finding a trusted, reliable solar installer near you that offers competitive pricing by checking out EnergySage. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
