The government announced the results of the seventh Contracts for Difference (CfD) allocation round on 14 January 2026, describing the outcome as a "historic win"1. Five fixed-foundation offshore wind projects totalling 8.25GW secured contracts at an average strike price of £91 per megawatt hour (MWh), while two floating offshore wind projects with a combined capacity of 192.5MW won contracts at £216/MWh1. The total of 8.4GW is the largest offshore wind auction ever held in Europe, according to industry group WindEurope1.
The results were published in two parts under reforms intended to speed up the process for offshore wind. The 14 January announcement covered fixed-foundation and floating offshore wind only; a second set of results covering technologies including large-scale solar and onshore wind is due between 6 and 9 February 20261. Seventeen fixed-foundation projects totalling 24.8GW had competed, meaning many missed out1.
The winning fixed-foundation projects are:
| Project | Capacity (MW) | Owners | Strike price (2024 prices) | Delivery year (phase one) |
|---|---|---|---|---|
| Awel y Mor | 775 | RWE, SWM, Siemens Financial Services | £91.20/MWh | 2030/31 |
| Dogger Bank South | 3,000 | RWE, Masdar | £91.20/MWh | 2030/2031 |
| Norfolk Vanguard East | 1,545 | RWE | £91.20/MWh | 2029/2030 |
| Norfolk Vanguard West | 1,545 | RWE | £91.20/MWh | 2028/2029 |
| Berwick Bank | 1,380 | SSE Renewables | £89.49/MWh | 2030/2031 |
The two floating projects, Pentland (92.5MW, owned by CIP, Eurus Energy and Hexicon) and Erebus (100MW, owned by TotalEnergies and Simply Blue Energy), both secured £216.46/MWh and are due to deliver in 2029/20301.
Offshore wind prices rose by around 10% since the previous round, but analysis cited suggests the outcome will be roughly "cost neutral" for consumers, because CfD payments are balanced by lower wholesale costs1. Under the Contracts for Difference mechanism, introduced in 2014, generators receive a payment when wholesale prices fall below the strike price and pay back the difference when market prices are higher; between November 2021 and January 2022, CfD projects paid back £114.4m to consumers1.
Carbon Brief analysis suggests the capacity secured will generate around 37 terawatt hours of electricity each year, around 12% of national demand, and enough collectively to power more than 12m homes1. The result follows the fifth allocation round in 2023, when no offshore wind projects secured contracts, and the sixth round, when 5.3GW was secured1. The 2.4GW Hornsea 4 scheme, awarded a CfD in the sixth round, was cancelled in May 2025, with developer Ørsted citing cost inflation1.
"Still, a record 8.4GW of offshore wind secured contracts, making it the biggest ever offshore wind auction in Europe, according to industry group WindEurope."
Why it matters for households
CfD strike prices are not retail prices, but they shape what households eventually pay for the electricity generated. When wholesale prices sit below the strike price, the difference is added to consumer bills through levies; when they sit above it, generators pay the difference back, as happened between November 2021 and January 20221. The government's "budget" for the auction is a notional limit on the levies that can be added to bills, not spending from government coffers, and it does not translate into an equivalent rise in consumer costs because CfD projects also push down wholesale prices, which make up the bulk of bills1.
For a home's energy independence, the practical effect is a larger volume of wind power on the UK grid contracted at fixed prices for 20 years, following the extension of contract terms under the reforms1. That reduces exposure to gas price movements for the share of demand these projects serve, though it does not remove gas from the system. The projects are spread around the UK, which is expected to ease grid connections; Aurora Energy Research noted that 83% of the capacity connects in areas of high power demand and greater network capacity1.
What happens next
The second set of AR7 results, covering large-scale solar and onshore wind, is due between 6 and 9 February 20261. With those results included, projects holding CfDs are expected to generate some 135TWh of power once completed, nearly half of current demand1. Delivery years for the fixed-foundation projects announced range from 2028/2029 to 2030/2031, and 2029/2030 for the floating projects1.