The UK Government’s latest renewable energy initiative, contracts for difference (CfD) Allocation Round 7 (AR7), has secured 8.4GW of offshore wind capacity.
This capacity is expected to generate enough clean electricity to power more than 12 million homes.
The AR7 auction also resulted in £3.4bn in private investment, following an initial £204m of public funding, aimed at enhancing domestic supply chains and manufacturing facilities.
Central to this initiative is the Clean Industry Bonus (CIB), a government measure designed to incentivise investment in domestic infrastructure and cleaner factories.
Industry estimates indicate that for every pound of public funding provided through the CIB, £17 is contributed by private investors, focusing on supply chain development in economically challenged regions.
This move is expected to create up to 7,000 jobs across the UK. It includes significant employment opportunities in Scotland, which will receive up to £1.1bn in supply chain investment and as many as 2,400 new roles.
Scottish ports such as Nigg and Aberdeen, along with manufacturers and suppliers across Britain’s industrial regions, are set to benefit from this influx of investment.
Overall, the UK Government anticipates that the offshore wind sector will support approximately 100,000 jobs by 2030.
UK Energy Secretary Ed Miliband said: “Our clean energy mission is creating thousands of good jobs for working people in their hometown, bringing transformational opportunities for Britain and reversing decades of industrial decline.
“This investment in clean, homegrown power will be felt for decades, powering Scotland’s future and backing the proud industrial base of our country.”
As part of the AR7 auction, RWE secured CfD for a total of 6.9GW of offshore wind capacity across various projects. These include Norfolk Vanguard East and West and Dogger Bank South (DBS) East and West projects in the North Sea, and Awel y Môr in the Irish Sea.
All projects received CfDs at a strike price of £91.2 per megawatt-hour, adjusted for inflation as per the Department for Energy Security and Net Zero’s confirmation.
In addition, RWE has entered into a partnership with KKR on the Norfolk Vanguard East and West projects. As part of this, KKR will acquire a 50% stake in each of the two offshore wind projects, pending regulatory approval expected in summer 2026.
The Norfolk Vanguard projects are located off the coast of Norfolk and together account for 3.1GW, enough capacity to supply around three million UK homes once operational.
The DBS projects add another 3GW with similar output potential, while Awel y Môr is projected to provide 800MW, sufficient electricity for around 870,000 homes annually.
RWE CEO Markus Krebber said: “We are delighted to have been successful in securing long-term offtake contracts for five projects in AR7. In addition, we are excited to join forces with KKR as our strategic partner in the Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects.
“By combining KKR’s investment know-how in large-scale, complex infrastructure projects with RWE’s extensive offshore wind expertise, we are well positioned to jointly realise these major projects.”
