The UK government has initiated a consultation on proposed changes to the Contracts for Difference (CfD) scheme, targeting offshore and floating wind projects, in anticipation of Allocation Round 8 (AR8) and future rounds.
The consultation, released by the Department for Energy Security and Net Zero, invites industry input on contractual and eligibility updates. These changes aim to address the increasing scale and complexity of offshore wind projects, particularly those involving floating and deepwater technologies.
For floating offshore wind, the government suggests adjusting CfD contract terms to better match technological development timelines. This includes a proposed extension of the Longstop Period to allow more time for project commissioning and prevent contract termination.
The government also proposes lowering the Required Installed Capacity (RIC) threshold for floating offshore wind projects. Current CfD technologies must deliver at least 95% of the agreed capacity, except for fixed-bottom offshore wind which is set at 85% due to construction risks. Given the growing scale of floating wind projects, the same RIC requirement as fixed-bottom offshore wind is anticipated.
Moreover, the consultation introduces a new CfD technology category: Other Deepwater Offshore Wind (ODOW). This would allow offshore projects with non-standard or innovative foundation solutions in deepwater locations to compete for CfD support.
The CfD scheme currently supports fixed-bottom and floating offshore wind, with existing regulations (Allocation Regulations 2014) recognizing only floating designs as eligible. The ODOW category aims to include hybrid foundations “suitable for deepwater deployment but not technically floating under current definitions.”
These proposed changes aim to keep the CfD scheme relevant as offshore wind technologies advance, maintaining investor confidence and ensuring project delivery remains timely.
The consultation will remain open until 30 January 2026, with any agreed changes informing Allocation Round 8 and future CfD auctions.
The UK government commenced the seventh CfD Allocation Round (AR7) in August, with a budget of GBP 1.08 billion (approximately EUR 1.24 billion) for offshore and floating wind.
According to the official timeline, sealed bids for offshore wind projects in AR7 were due between 11 and 17 November, with results expected on 14 January 2026.
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