The UK Low Carbon Contracts Company (LCCC) has signed Contracts for Difference (CfD) with over 200 projects in Allocation Round 7 (AR7), totaling around 14.7 GW. Offshore wind projects comprise 8.4 GW, the largest segment of contracted capacity.
LCCC acts as the sole counterparty to the CfDs, managing the contracts over 15-20-year terms.
The seventh CfD allocation round featured a distinct process for offshore wind technologies. Other renewable energy projects competed in AR7a, which awarded CfDs for 4.9 GW of solar and 1.3 GW of onshore wind.
Floating offshore wind was included in AR7 through a specialized auction, supporting test and demonstration-scale projects. Two floating wind projects secured contracts.
Fixed-bottom offshore wind represents most of the allocated AR7 capacity, with about 8.2 GW contracted at an average strike price of GBP 90.91/MWh (around EUR 105/MWh).
The CfD-winning fixed-bottom projects include RWE’s Norfolk Vanguard East and West, two Dogger Bank South East projects, Dogger Bank South West, Awel y Môr, and SSE Renewables’ Berwick Bank B. The winning floating wind projects are the 100 MW Erebus in the Celtic Sea and the 100 MW Pentland in Scotland.
“Allocation Round 7 highlights the strength of the Contracts for Difference scheme in delivering low-carbon energy and reducing reliance on global fossil fuel markets,” said Dan Sadler, Director of Scheme Delivery at LCCC.
“LCCC provides long-term certainty and stability, acting as a reliable counterparty for these contracts. These agreements will stabilize prices for the next 15-20 years, protecting against external shocks.”
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