New auction delivers unprecedented clean, homegrown power
Record solar, onshore wind, and tidal projects - building on last month’s offshore wind success - deliver Britain’s biggest-ever clean energy auction.
- Record solar, onshore wind, and tidal projects - building on last month’s offshore wind success - deliver Britain’s biggest-ever clean energy auction
- Largest ever procurement of solar projects in the UK – 4.9 GW secured –ÌýprovidingÌýa major boost for one of the cheapest and cleanest energyÌýsources available
- Taken togetherÌýwith offshore wind results,Ìýgovernment secures 14.7 GW of clean, homegrown power enough to power equivalent of 16 million homes
- New clean, homegrown power secured today will reduce energy bills for families, deliver clean power byÌý2030Ìýand give Britain energy sovereignty
Britain has taken another significant leap towards energy independence and lower bills as it announces record levels of new solar and onshore wind projects as part of its latest renewables auction.
This comes justÌýweeksÌýafterÌýthe government deliveredÌýthe single biggest procurement ofÌýoffshore windÌýthat Europe hasÌýseen,Ìýconfounding the global challenges facing the industry and securing a major vote of confidence in the UK’s clean energy mission.ÌýÌý
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Today’s outcome builds on that success with a record number of solar projects secured, the largest onshore wind projectÌýto be successfulÌýin EnglandÌýin a decade, and new tidal stream schemes.ÌýCombined with January’s offshore wind results, the government has now delivered a record 201 projects, generating 14.7 GW of new clean powerÌý-Ìýenough to supply the equivalent ofÌý16Ìýmillion homes.ÌýÌý
This puts the UKÌýon track for its 2030Ìýclean power target, securing clean, homegrown energy atÌýgood valueÌýfor billpayersÌý-Ìýonce again proving that clean power is the right choice for energy security and to meet rising electricity demand.ÌýNew onshore windÌýhas been agreedÌýatÌýa price ofÌý£72.24/MWhÌýand new solar at £65.23/MWh, both under half the £147/MWh cost of building andÌýoperatingÌýnew gas power stations.Ìý
Once built and generating,ÌýnewÌýclean, homegrown powerÌýsecured today will reduceÌýbillsÌýfor householdsÌýand drive down wholesale prices,ÌýwhileÌýprotecting families and businessesÌýfromÌýfossil fuelÌýprice shocks that have triggered half of all recessions since the 1970s.Ìý
These projects deliver major infrastructure for the country as Britain races to cut energy bills and meet future electricity demand – unlocking an additional £5 billion in private sector investment and supporting up to 10,000 jobs. Successful projects include:
- Imerys Wind Farm in CornwallÌý– the largest onshore wind project to be successful in England in aÌýdecade,ÌýhelpingÌýrebuildÌýan industry that wasÌýstagnantÌýunder the deÌýfacto onshore wind ban
- SanquharÌýII Wind FarmÌýinÌýDumfries and Galloway in ScotlandÌý- the fourth largest onshore wind farm in the UKÌý- driving growth and private investment across the regionÌýÌý
- West Burton solar farm - a Nationally Significant Infrastructure Project that is now the largest solar farm ever to win a government renewables contract, transforming the home of the last coal-fired power station into a powerhouse of clean, secure, homegrown energy that Britain controls
Britain is building clean, homegrown energy at every scale – these results follow the publication of the Local Power Plan by the government and Great British Energy. A fund of up to £1 billion will enable communities across the UK to own and control their own clean energy projects, building community wealth through the largest public investment in community energy in this country’s history.
It alsoÌýfollowsÌýwider action to cut energyÌýbills, includingÌýtakingÌýan average £150Ìýof costsÌýoffÌýbills from April and delivering the biggest ever public investment in home energy upgrades through the Warm Homes Plan.
Energy Secretary Ed Miliband said:Ìý
These results shows once again that clean British power is the right choice for our country, agreeing a price for newÌýonshore wind andÌýsolar that is over 50% cheaper than the cost of building andÌýoperatingÌýnew gas.ÌýÌý
By backing solar and onshore wind at scale,Ìýwe’reÌýdriving bills down for good and protecting families, businesses, and our countryÌýfrom the fossil fuelÌýrollercoaster controlled by petrostates and dictators.ÌýThis is how we takeÌýbackÌýcontrol of our energy and deliver a new era of energy abundance andÌýindependence.
Head of Mission Control, Chris Stark said:ÌýÌýÌý
Today’s record results are another boost for Britain’s 2030 clean power mission. They mean more homegrown power, greater energy security, atÌýa good priceÌýfor the consumer.
With each new solar and onshore wind project we reduce Britain’s reliance on gas power plants, insulating families from the next spike in global gas prices.
Neil McDermott, Chief Executive of the Low Carbon Contracts Company (LCCC), said:Ìý
These results demonstrate the enormous contribution theÌýCfD is making to Great Britain’s electricity system.Ìý
Together these projects will provide new renewable electricity generation at scale, particularly when paired with the record offshore wind capacity contracted in AR7. Ìý
LCCC is proud to be managing these contracts, providing certainty to investors and supporting British jobs.
Rebecca Beresford,ÌýDirector of MarketsÌýatÌýtheÌýNational Energy System Operator (NESO),Ìýsaid:Ìý
Providing certainty for developers is critical to delivering on our collective future energy needs.ÌýWe’re really proud of the work our teams do to help deliver these auctions and to administer the Contracts for Difference process.
Factsheet
ÌýSolar:Ìý
- CapacityÌýsecured:Ìý4.9 GWÌý
- Number of projects: 157Ìý
Onshore wind:Ìý
- CapacityÌýsecured:Ìý1.3 GWÌý
- Number of projects:Ìý28Ìý
Tidal:Ìý
- CapacityÌýÌýsecured:Ìý20.9 MWÌý
- Number of projects:Ìý4Ìý
Offshore windÌý(fixed and floating):Ìý
- CapacityÌýsecured:Ìý8.4 GWÌý
- Number of projects:Ìý12
Notes to editors
- successful projects can be found here: Contracts for Difference (CfD) Allocation Round 7: results
- AR7Ìýas a whole isÌýthe largestÌýCfDÌýround ever inÌýawardedÌýcapacity – 14.7 GW.ÌýThe next largest rounds were AR4Ìýwhich awardedÌý10.8 GW and AR6Ìýwhich awardedÌý9.6 GWÌýÌýÌý
- largestÌýCfDÌýround in terms of number ofÌýprojectsÌýawardedÌý– AR6 was previously the largest round (131Ìýprojects).ÌýInÌýAR7, a total of 189ÌýprojectsÌýwere awarded in Pots 1 & 2 alone,Ìý201ÌýprojectsÌýin total across whole round
- bill impacts based on DESNZ internal analysis of potential consumer bills under a scenario where Solar and Onshore Wind is delivered by AR7 in addition to existing and committed low carbon generation. This considered household bill impacts over the period 2031-35 (when additional renewable capacity would be fully deployed) and found that the average electricity bill for an exemplar ‘dual fuel, non-EV owning’ household would be lower compared to today (in real terms). This analysis focussed on the incremental impact of the AR7 capacity and as such does not represent a full estimate of future bill levels. For example this analysis doesn’t include all potential bill reduction measures such as those announced in the budget
| Technology | AR7 | Contextual Information | ||||
|---|---|---|---|---|---|---|
| Ìý | ASP (£/MWh - 2024) | Clearing Price (£/MWh - 2024) | Discount on ASP | LCOE (£/MWh - 2024) | LCOE Gas CCGT, 30% Load Factor (£/MWh - 2024) | Clearing Price Discount on LCOE Gas CCGT, 30% Load Factor |
| Onshore Wind | 92 | 72.24 | 21% | 58 | 147 | 51% |
| Solar PV | 75 | 65.23 | 13% | 60 | 147 | 56% |
Note: estimates for theÌýlevelisedÌýcost of electricity (LCOE) shown in the table above are for plants commissioning in 2030. This table is forÌýOnshore Wind,ÌýLarge ScaleÌýSolarÌýPVÌýandÌýGas CCGT, where a 30% Load Factor is assumed for gas.ÌýGeneration cost information (LCOE) available here:ÌýElectricity generation costs 2025 - °Ç¸ç³Ô¹Ï
- the homes powered estimate reflects the equivalent number of homes that could be powered based on an estimate of the annual generation from the capacity procured in AR7. It is not possible to continuously power a home through intermittent renewables – this capacity will work alongside the rest of the electricity system to power homes and businesses. The estimate is calculated using publishedÌýsubnationalÌýelectricity consumption data  and technology specific load factor assumptions published in theÌý. The actual generation will vary based on site specific factors.Ìý
- investment figures are based on generation costs data publishedÌýfor Onshore WindÌýandÌýSolarÌýin the link provided above.Ìý
- jobs figuresÌýrepresentÌýtheÌýmaximumÌýnumber ofÌýdirect and indirectÌýjobs which could be supported at the peak across both Solar and Onshore Wind. TheÌýfigures are estimated using theÌýDESNZÌýpublished methodologiesÌýfor each technology which are available here:ÌýSolar -ÌýÌýJob estimates for solar PV by 2030: methodology note - °Ç¸ç³Ô¹Ï; Onshore Wind -ÌýJob estimates for wind generation by 2030: methodology note - °Ç¸ç³Ô¹Ï