The UK government has awarded 9.6GW of renewable energy contracts across 131 green infrastructure projects in its sixth allocation round (AR6), marking a significant step towards the country’s clean energy goals.
According to the UK Department for Energy Security and Net Zero (DESNZ), AR6 is the biggest round ever, with substantial numbers for onshore and offshore wind, solar, and tidal energy facilities.
These renewable energy projects are expected to power the equivalent of 11 million British households.
Approximately 5GW of the allocated capacity will come from offshore wind. This includes two large offshore wind farms in Europe, Hornsea 3 and Hornsea 4, both located off the Yorkshire coast.
Ørsted secured CfD for a 1.08GW share of the Hornsea 3 project and 2.4GW CfD for the Hornsea 4 project.
The round also saw the return of offshore wind projects after none were secured in the 2023 auction.
In addition to offshore wind, the latest round awarded contracts to 93 solar projects, adding about 3.3GW to the UK’s capacity, a 20% increase from the current installed capacity.
Furthermore, 22 onshore wind projects will contribute around 1GW of capacity, while six tidal stream projects have also secured contracts.
The awarded projects, which are expected to begin generating power from 2026, are anticipated to contribute significantly to the UK’s energy independence. They are also expected to protect households and businesses from volatile gas prices.
UK Energy Secretary Ed Miliband said: “These results show that together, this government and the energy industry are securing investment into our country.
“This auction has produced a record number of solar projects bolstering our mission for a solar revolution, we have powered forward with onshore wind, secured the largest commercial floating offshore wind project in the world and got the offshore industry back on its feet.
“As we accelerate our plan for clean power by 2030 the government will work with the industry on how we can build on this success to ensure we can go even further and faster to deliver the power we need.”
DESNZ said that the government’s recent decision to increase the auction’s budget by 50% has been instrumental in securing the record level of renewable capacity.
In addition to boosting energy security, the CfD awards are expected to support new green jobs across the UK, particularly in industrial heartlands and rural areas. They are also anticipated to foster economic growth from the Scottish Highlands to the Suffolk coast.
As part of its broader strategy to achieve a clean, secure power grid by 2030, the UK government has also recently lifted the ban on onshore wind in England. The government has also launched initiatives such as Great British Energy and the Clean Energy Mission Control Centre.
Great British Energy, in partnership with the Crown Estate, is backed by £8.3bn of new funding. This initiative is estimated to create up to 20-30GW of new offshore wind developments reaching seabed lease stage by 2030.
According to DESNZ, all efforts are aimed at decarbonising the electricity grid by 2030 and ensuring the country’s transition to a net-zero economy by 2050.
Among the awarded projects are Iberdrola’s UK subsidiary Scottish Power’s 963MW East Anglia TWO and 158 MW East Anglia THREE, RWE’s two onshore and three solar photovoltaic (PV) projects, and SSE’s 130.5MW Cloiche onshore wind farm.
