British AR7 Renewable Energy Auction Secures 14.7 GW of Clean Power Capacity - Offshore, Onshore and Solar at Record Levels
London (UK) - The United Kingdom is pressing ahead with the expansion of renewable energy. After the offshore wind results were published in January as part of the British AR7 auction, the awards for onshore wind, solar and tidal energy were also announced last week. Altogether, the successful projects in the AR7 round now total 14.7 GW of capacity - enough to theoretically supply around 16 million households with clean electricity.
Record round for onshore wind: 1.3 GW to strengthen energy security
In the current government auction, 28 new onshore wind projects with a total capacity of around 1.3 GW were awarded contracts. These facilities are expected to supply over 1.2 million UK households and save approximately 1.46 million tonnes of CO₂ annually. The clearing price (strike price) stands at £72.24/MWh – roughly half the cost of new gas-fired power plants (£147/MWh).
The projects are spread across the UK: 21 in Scotland (1.09 GW), two in England (28 MW) and five in Wales (185 MW). In addition to generating electricity, they are expected to contribute around £6.5 million to community funds, for example for sports facilities or conservation projects. The Department for Energy Security and Net Zero has also calculated that the construction and operation of these wind farms – together with investments in the solar and tidal projects confirmed under AR7 – could create up to 10,000 jobs and bring £5 billion in private investment into the United Kingdom.
“The new onshore wind projects announced today will bring much-needed jobs, private investment, community benefits and fresh opportunities for supply chain companies throughout England, Scotland and Wales. They are also vital to shield consumers from volatile global gas prices,” commented James Robottom, Head of Onshore Wind Delivery at the industry association RenewableUK.
The government has set a target of 27–29 GW of onshore wind capacity to generate clean electricity by 2030. So far, a total of 18 GW has either been built, is under construction or has secured contracts. The 1.3 GW awarded in this round moves the UK closer to its 2030 goal. According to RenewableUK, between 3.85 and 4.85 GW of additional capacity would need to be awarded in the next two auction rounds to reach the target.
Solar energy at record level: 4.9 GW for households and industry
In the solar segment, projects totaling 4.9 GW were awarded in the current auction round. According to the Department for Energy Security and Net Zero, this represents the largest procurement of solar projects ever in the UK and provides a significant boost to one of the cheapest and cleanest available energy sources. The solar projects were awarded at a clearing price of £65.23/MWh.
“By backing solar and onshore wind at scale, we’re driving bills down for good and protecting families, businesses, and our country from the fossil fuel rollercoaster controlled by petrostates and dictators,” Energy Secretary Ed Miliband commented on the auction results.
Minimum remuneration and revenue cap: How the UK supports new wind and solar projects
The UK government plans further auction rounds under the state-backed Contracts for Difference (CfD) scheme to provide investment security and accelerate the rollout of large-scale projects. The CfD model is similar to Germany’s Renewable Energy Sources Act (EEG) in providing a price floor, but it combines a minimum remuneration (clearing/strike price) with a revenue cap. If market revenues exceed the agreed reference price, the additional income is returned to the state. The aim is to advance the expansion of renewable energy while providing planning certainty for investors.
Source: IWR Online, 19 Feb 2026