UK Approves New Onshore Renewable Energy Projects in Major CfD Auction

Web Reporter
3 Min Read
Disclosure: This website may contain affiliate links, which means I may earn a commission if you click on the link and make a purchase. I only recommend products or services that I personally use and believe will add value to my readers. Your support is appreciated!

The UK Government has confirmed a fresh wave of onshore renewable energy projects under the Contracts for Difference (CfD) scheme, following last month’s record-breaking offshore wind auction. Allocation Round 7 (AR7) awarded contracts for 4.9GW of solar and 1.3GW of onshore wind capacity across Britain, highlighting the country’s rapid rollout of clean power.

Solar projects secured contracts at a strike price of £65.23 per megawatt hour (in 2024 prices), below the £70/MWh achieved in Allocation Round 6. The volume of solar capacity awarded represents the largest ever secured in a single CfD auction, reflecting the sector’s growing scale and affordability. Onshore wind projects received a strike price of £72/MWh, slightly higher than the AR6 average of £71/MWh but still below the £73/MWh of Allocation Round 5, signalling continued cost stability in wind energy development.

Once completed, the newly announced projects will raise the UK’s total CfD-supported wind and solar capacity to 50.6GW, including existing operational and under-construction schemes. As of September 2025, the UK had 16.3GW of installed onshore wind capacity and more than 21GW of solar capacity, meaning the AR7 results will significantly expand the nation’s renewable footprint. Across all technologies, Allocation Round 7 has secured 14.7GW of new clean energy projects, marking another step towards decarbonising the power system and strengthening domestic energy supply.

Frankie Mayo, senior analyst at Ember, said the auction results underscored the momentum behind renewable energy deployment in Britain. “This is a great clean power achievement. Wind and solar are unstoppable across Britain, with new projects announced today unlocking access to reliable, homegrown energy and cutting our reliance on volatile fossil fuels for decades to come,” Mayo said.

The announcement comes as ministers continue to position renewable energy at the heart of the UK’s long-term energy security and net zero strategy. Onshore wind and solar are increasingly recognised as among the fastest and most cost-effective technologies for large-scale deployment, offering predictable energy output and economic benefits while reducing carbon emissions.

Industry experts also highlighted the significance of competitive strike prices. Falling costs for solar reflect improved technology, efficient project development, and favourable financing conditions. Meanwhile, onshore wind projects remain attractive to investors due to predictable returns under the CfD framework, which guarantees a fixed price for the electricity generated.

With AR7, the UK strengthens its push to meet renewable energy targets and secure a resilient electricity system in the face of global energy price volatility, while supporting domestic jobs and investment in low-carbon infrastructure. The CfD scheme continues to play a pivotal role in driving growth in both solar and wind sectors, enabling Britain to expand homegrown renewable capacity at an unprecedented pace.

TAGGED:
Share This Article