The maximum price guarantee for generating electricity from new wind farms has been raised by the Government.

DESNZ has published the core parameters for Allocation Round 7 (AR7) of the Contracts for Difference (CfD) scheme, alongside a number of other documents relating to the round that set out the administrative strike prices (ASPs), pot structure and delivery years for AR7.

The full budget for AR7 will be published ahead of the sealed bid window opening later this year and will be one of the last that will cover projects that might contribute to the Government's target of is Clean Power project by 2030.

The maximum price, known as the Administrative Strike Price (ASP) has been criticised as “high” by the Conservatives, will almost certainly be lower when a final clearing price is set after all the bids are in, it is, after all, a maximum before auction. It might also be noted that the contracts will now run up to 20 years in another change.

The maximum guaranteed price for offshore wind will be £113 per MWh, (it was £102 in 2024) and floating offshore wind, a newer more costly technology, will be £271 per MWh (£245).

For the first time, offshore wind projects without full planning permission will be able to apply and LCCC clarified that, as the CfD Counterparty, LCCC considers that where NESO moves a project’s grid connection date as a result of the NESO Grid Connection Reform programme and that causes a delay to the project, such event is capable of constituting a grid delay for the purposes of the CfD, allowing generators to apply for extensions to any contractual dates impacted by their connection date moving provided they can demonstrate delay to their project.

DESNZ will have been mindful of 2023 when no offshore wind developers bid for any projects as the ASP was considered too low to be realistic.

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