UK sets offshore wind auction record. Offshore beats gas and nuclear on price

The United Kingdom has announced the results of the largest offshore wind auction ever held in Europe, awarding 8.4 GW of capacity – enough to power more than 12 million households. The outcome of the AR7 auction round confirms offshore wind as the most competitive large-scale clean power technology, outperforming both gas-fired and nuclear generation on cost.

Kamil Kusier executive editor 29.01.2026, 10:58 Reading time: 2 min

Offshore wind turbines standing against a clear sky and blue sea — fot. PSEW

In brief

The United Kingdom has concluded the largest offshore wind auction in European history, awarding contracts for difference for 8.4 GW of capacity, enough for more than 12 million households. In the seventh round AR7, 9 projects with a combined capacity of 24 GW competed, and prices for bottom-fixed farms came to GBP 89.49 per MWh in Scotland and GBP 91.20 per MWh in England and Wales, compared with about GBP 124 from nuclear and GBP 147 from gas. Ed Miliband, secretary of state for energy security, called offshore wind the most competitive clean energy technology.

Record capacity and strong competition

The auction attracted nine offshore wind projects with a total capacity of 24 GW, making it the most competitive offshore wind auction in Europe to date. Contracts for Difference (CfDs) were awarded to:

six bottom-fixed offshore wind farms with a combined capacity of 6.2 GW,
two floating offshore wind projects totaling approximately 200 MW.

Strike prices for bottom-fixed projects ranged between £89.49/MWh in Scotland and £91.20/MWh in England and Wales (approximately €433–442/MWh).

By comparison, according to Carbon Brief, the levelised cost of electricity from a new nuclear power plant in the UK is around £124/MWh, while gas-fired generation costs approximately £147/MWh.

Offshore wind drives down electricity bills

Electricity generated by the newly awarded 8.4 GW of offshore wind capacity is expected to deliver annual savings of nearly £1.7 billion for UK consumers compared to alternative energy sources.

Analysis by Aurora Energy Research indicates that offshore wind could reduce household electricity bills by around £20 per year by 2035, compared with a gas-based system. Meanwhile, the Energy and Climate Intelligence Unit estimates that without wind generation, wholesale electricity prices in 2025 would be 46% higher, reaching £121/MWh instead of £83/MWh.

Political backing and long-term vision

– These results confirm offshore wind as the most competitive large-scale clean electricity generation technology, said Ed Miliband, UK Secretary of State for Energy Security.

Speaking at the signing of the Joint Offshore Wind Investment Pact on 26 January alongside representatives of nine North Sea governments, he added:

– Offshore wind is central to our energy security. Offshore wind is for the winners.

Offshore wind as a pillar of Europe’s energy transition

The UK installed its first offshore wind farm in 2000 and now operates around 16 GW of offshore capacity, making it Europe’s leading offshore wind market. Under the Clean Power 2030 plan, the country aims to reach 50 GW by 2030 and exceed 100 GW by 2050.

The success of the AR7 auction, combined with the Joint Offshore Wind Investment Pact for the North Seas, sends a strong signal that offshore wind has become a cornerstone of Europe’s future energy mix.

Source: Gazeta Morska · Compiled by: Kamil Kusier