NEWS / Infrastructure Intelligence / Offshore wind contracts secured to power 12 million homes

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14 JAN 2026

OFFSHORE WIND CONTRACTS SECURED TO POWER 12 MILLION HOMES

A record 8.4GW of offshore wind has been secured in Europe’s biggest ever offshore wind auction - enough clean electricity to power the equivalent of over 12 million homes.

The latest Contract for Difference Auction Round 7 (AR7) will unlock around £22bn in private investment, supporting around 7,000 jobs, bringing growth and jobs to all regions of the country.

Government today said the news puts Britain “firmly back on track” to achieve its clean power mission by 2030. It comes after success in the AR6 round last year after AR5 failed to secured a single offshore wind project for the country.

The Contracts for Difference scheme works by developers bidding for contracts to help deliver renewable energy projects, with the scheme providing a guaranteed price for the clean electricity they generate. This gives industry greater certainty to invest, knowing that when electricity prices fluctuate, they will always get a set price for their projects.

Projects have won across the UK - including fixed offshore wind in: 

  • Dogger Bank South off the coast of Yorkshire and Norfolk Vanguard off East Anglia – two of the largest offshore wind farms in the world, supporting thousands of jobs
  • Berwick Bank in the North Sea - the first new Scottish project since 2022 and the largest planned offshore wind project in the world
  • Awel Y Môr - the first Welsh project to win a contract in more than a decade

Winning projects include Erebus, in the Celtic Sea, and Pentland in Scotland, backed by investment from Great British Energy and the National Wealth Fund. 

Energy secretary, Ed Miliband, said: “With these results, Britain is taking back control of our energy sovereignty. This is a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators.

“It is a monumental step towards clean power by 2030 and the price secured in this auction is 40% lower than the alternative cost of building and operating a new gas plant.

Clean, homegrown, power is the right choice for this country to bring down bills for good and this auction will create thousands of jobs throughout Britain.”

Ana Musat, executive director of policy at RenewableUK, added:  “This is a great result for Britain’s energy security and for hard-pressed billpayers, because these new offshore wind farms will generate the power we need at a lower cost than new gas or nuclear plants, and at a stable and predictable price.

“The UK has made the right decision to roll out renewables at speed and at scale, giving our country greater energy security and protecting consumers against volatile global gas prices which caused the last energy crisis. Homegrown power is the best defence against geopolitical volatility, and this auction is a significant step forward towards energy independence.”

RWE’s Norfolk Vanguard East and Norfolk Vanguard West projects, as well as its two Dogger Bank South projects, all of which are located in the North Sea, and its Awel y Môr project located in the Irish Sea have been successful.

Markus Krebber, CEO of RWE AG: “We are delighted to have been successful in securing long-term offtake contracts for five projects in AR7. In addition, we are excited to join forces with KKR as our strategic partner in the Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects.

“By combining KKR’s investment know-how in large-scale, complex infrastructure projects with RWE’s extensive offshore wind expertise, we are well positioned to jointly realise these major projects.

“With the Dogger Bank South projects and our renowned partner Masdar, we are experiencing firsthand the value of strong partnerships. And at Awel y Môr, we are proud to collaborate with Stadtwerke München and Siemens, who bring their expertise and commitment to our shared success. With the successful outcome of AR7, and the agreed partnership with KKR, RWE has reached key milestones in executing its UK offshore wind development pipeline.”

Alan Sinclair, director and UK head of energy and natural resources, Turner & Townsend UK, said: “Generating sustainable energy is integral to both security and affordability for bill payers. The Labour government has put this at the forefront of its objectives, and the latest – record breaking – auction demonstrates a strong signal of confidence in the industry. The UK is the second largest offshore wind market globally, with 14.7GW of offshore wind power installed to date. The industry holds vast potential to drive the green energy transition and create economic growth.

“But competition for resources remains intense both globally and at home, with several major infrastructure and energy programmes already in the pipeline. We need to take this fresh commitment as an opportunity to bolster capacity – addressing stretched pools of talent and overcoming supply chain bottlenecks – to ensure the sector’s success and strength not just now but in the decades to come.

“Equally critical will be harnessing the skills and expertise already within the industry. This relies on getting the right systems, processes and commercial frameworks in place to keep a close handle on programmes – and ultimately to achieve better outcomes for the UK economy, consumers and businesses.”

Click here for full details for AR7.

 

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