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03 AUG 2026 MONDAY
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The UK has given the offshore wind sector a record-breaking boost through its latest renewables auction. The result is the biggest single procurement of offshore wind energy in UK and European history, which points to a major vote of confidence in the UK’s offshore wind industry. The previous two auctions were not nearly as good. Auction Round 5 did not secure a single offshore wind project, whereas the previous round, AR6, successfully re-engaged offshore wind developers. This auction round, known as AR7, has secured a record capacity of 8.4GW of offshore wind, which will generate enough clean electricity to power the equivalent of 12m homes. This result puts the UK firmly on track to achieve its clean power mission by 2030, which includes at least 43GW of offshore wind. The UK government stated that offshore wind is currently cheaper to build and operate than new gas. In new figures published today using the LCOE industry metric, the cost of building and operating a new gas-fired power station is £147 ($197) per MWh. By contrast, the results for fixed offshore wind in today’s auction were £90.91 ($122) per MWh on average – or £65.25 ($87.7) in the commonly used benchmark of 2012 prices – 40% cheaper than the cost of building and operating new gas. The government claimed that the auction would unlock around £22bn ($29.5bn) in private investment and support around 7,000 jobs. Projects have been won in every part of the United Kingdom, including fixed offshore wind projects such as Dogger Bank South off the coast of Yorkshire and Norfolk Vanguard off East Anglia – two of the largest offshore wind farms in the world. Another winner was SSE with its Berwick Bank project in the North Sea, the first new Scottish project since 2022 and the largest planned offshore wind project in the world. Also, Awel Y Môr was the first Welsh project to win a contract in more than a decade. Floating offshore wind was also represented. Winning projects include Erebus in the Celtic Sea, being developed by Blue Gem Wind, a Simply Blue Group and TotalEnergies JV, and CIP’s Pentland in Scotland, backed by pioneering investment from Great British Energy and the National Wealth Fund. The biggest winner of the round is RWE, which secured contracts for 6.9GW of offshore wind projects. The capacity was spread out over its Norfolk Vanguard East and Norfolk Vanguard West, two Dogger Bank South, and the Awel y Môr offshore wind projects. Through reliance on homegrown clean power, the government is attempting to reduce the UK’s exposure to volatile global fossil fuel markets, which have contributed to half of all recessions since the 1970s and in 2025 alone. “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. 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,” said Ed Miliband, UK Energy Secretary. The original budget for fixed bottom offshore wind was £900m but has been increased to £1.79bn. This follows careful consideration of the bids submitted by projects, with the budget increased to secure additional capacity that represents good value for households. In May 2025, Offshore Energies UK (OEUK) said in a report that the country would fall short of meeting its ambitious offshore wind target if it did not secure at least 8.4GW of new offs
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news Splash247 ·2026-01-15

UK awards 8.4GW of offshore wind capacity in record-breaking round

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