The UK government has increased the guaranteed maximum electricity price for wind power developers in preparation for its largest renewable energy auction to date. The new contract-for-difference prices for 2025 are approximately £117 per megawatt-hour (MWh) for offshore wind, £281 per MWh for floating offshore wind, and £78 per MWh for solar photovoltaic (PV) projects. This adjustment comes amid an average wholesale UK power price of around £81 per MWh year-to-date, with recent wholesale prices at £88 per MWh. The National Energy System Operator recommends expanding offshore wind capacity to 26.8 gigawatts (GW) by 2030, noting that the maximum price for offshore wind contracts has risen by 11% compared to previous rounds. If contract lengths were consistent, the latest auction round (AR7) would be 48% more expensive than the previous round (AR6). Current UK power generation includes 7.2 GW from wind, 3.5 GW from solar, 6.7 GW from gas, 5.1 GW imported, 0.5 GW from hydro, 4.6 GW from nuclear, and 2.3 GW from biomass. The price increase reflects challenges for the Labour government in meeting its pledge to reduce household energy bills.
The National Energy System Operator suggests the UK should build 26.8 GW of offshore wind by 2030 which has seen its maximum price rise by 11% for an even longer contract. If the contracts were the same length, AR7 would be 48% more expensive than AR6. https://t.co/tXYFAbxp6t https://t.co/rClwJHKY5p
The UK will allow offshore wind farm developers to charge more for their power https://t.co/c7CYSKxswJ
UK Wind Power has rallied to 7.2GW this morning. With 3.5GW of Solar we are burning 6.7GW of Gas as well as importing 5.1GW. Hydro is 0.5GW. Nuclear is 4.6W and the awful Biomass 2.3GW. The price of wholesale electricity over the past 24 hours was £88 per MWh.