The UK has secured a record 8.4GW of offshore wind capacity in Europe’s largest auction to date, marking a significant stride towards energy independence and lower consumer bills. Energy Secretary Ed Miliband hailed the results as a “major vote of confidence” in Britain’s clean energy future, stating, “With these results, Britain is taking back control of our energy sovereignty. 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.”
The auction, known as Contracts for Difference AR7, will generate enough clean electricity to power the equivalent of 12 million homes, significantly boosting the UK’s progress towards its 2030 clean power mission. Notably, the results demonstrate that offshore wind is now cheaper to build and operate than new gas. According to new figures, the cost of building and operating a new gas-fired power station stands at £147 per megawatt hour, while the average cost for fixed offshore wind in this auction was £90.91 per megawatt hour—a 40% reduction.
The auction is expected to unlock around £22bn in private investment, supporting approximately 7,000 jobs across the UK. Projects have been secured in every part of the country, including major developments like Dogger Bank South, Norfolk Vanguard, Berwick Bank, and Awel Y Môr. These projects will not only bring economic benefits but also position the UK as a leader in emerging technologies, such as floating offshore wind.
Chris Stark, Head of Mission Control, emphasized the importance of these results amid global pressures on the offshore wind sector. “We’ve secured a record amount of capacity at a competitive price for consumers,” he said. “We need more offshore wind to meet the increasing demand for electricity in the years ahead. This result propels us towards a future of clean, secure energy abundance and reduced reliance on foreign imports.”
This development is likely to accelerate the UK’s transition to renewable energy, potentially influencing other countries to increase their investments in offshore wind. The economic benefits, including job creation and private investment, may also encourage further innovation and competition in the sector. As the UK races to meet rising electricity demand and cut energy bills, this record-breaking auction could serve as a catalyst for more ambitious clean energy targets and policies.