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After AR5 receiving no bids, the UK government increases the subsidy level for offshore wind substantially, meeting demands for industry.

The UK government has announced an update to the subsidy levels on offer in CfD AR6, increasing the strike price for fixed offshore projects with 66 % and floating projects with 52 %. The new maximum strike prices for AR6 are:

  • Fixed offshore wind: £73/MWh
  • Floating offshore wind: £176/MWh


AR6 will also revert to a separate allocation pot for offshore wind, in contrast with AR5, where offshore wind competed for the same pot as other renewable technologies. The last allocation round for subsidies (AR5), received no bids for offshore wind projects. Industry developers criticized the government for not offering subsidy contracts that match the new reality of increased costs in offshore wind.

In addition to the updated to AR6, the UK government announced proposals for new allocation rules for future CfD rounds, starting 2025. The consultation initiated proposes, among others, that offshore wind projects could get more money from 2025 auctions if they reduce carbon emissions in their supply chain.

AR6 is scheduled to open for bids March 27. next year and running until April 19, with results expected by mid- September.

Image Credit: RWE

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