The UK government has released a projected timeline for the Contract for Difference (CfD) Allocation Round 7 (AR7), anticipating the auction will start in August, with results announced between late 2025 and early 2026. Offshore wind project timelines are now distinct from other technologies, allowing quicker result confirmations, according to the Department for Energy Security and Net Zero (DESNZ).
The planned AR7 timeline for offshore wind, which includes both fixed-bottom and floating wind, indicates the auction will open between 7 and 27 August 2025. Results are expected between late December 2025 and mid-February 2026, depending on appeals and reviews.
Before the seventh CfD allocation round, the government will release the Clean Industry Bonus results, scheduled for June.
In the coming month, the Low Carbon Contracts Company (LCCC) will publish Minor & Necessary Modifications Guidance, offering advice on how applicants can apply for essential modifications to the Standard Terms. Potential CfD applicants can begin early engagement in June.
July will see the government release statutory notices, detailing administrative strike prices, pot structure, and delivery years, and it expects to have the AR7 framework published that month.
Prior to the August round opening, the final versions of the CfD Standard Terms and Conditions, along with the generic CfD Agreement and contract variants for AR7, will be published. Potential applicants will be invited to request minor modifications formally from the LCCC.
Upon completion of AR7’s qualification, bidding, and allocation processes, the government plans to finalize CfD contracts with selected offshore wind developers by March 2026.
Meanwhile, DESNZ is conducting further consultations on proposed AR7 changes, specifically relaxing eligibility for unconsented fixed-bottom offshore wind projects.
In February/March, a consultation was held, gathering diverse feedback. On 27 May, DESNZ requested further input on necessary technical and drafting amendments to the scheme rules and contract terms for implementing this policy, contingent on final government approval this summer before AR7 opens.
Proposed changes to the CfD scheme for AR7 include extending phasing, previously exclusive to fixed-bottom offshore wind, to floating wind projects.
These reforms are part of the Clean Power 2030 Action Plan, released by DESNZ in December 2024. The plan targets a nearly fully clean power system in the UK by 2030, with clean sources comprising 95% of Great Britain’s electricity generation, limiting gas usage to 5% of total generation.
Original Story at www.offshorewind.biz