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UK Awards 8.4GW of Offshore Wind at £90.91/MWh on 20‑Year CfDs

Analysts warn consumer bills could face pressure from top‑ups as grid delays threaten 2030 delivery.

Overview

  • Ministers say the auction secures about £22bn in private investment and 7,000 jobs across the country.
  • The strike price is up 11% on last year and sits above recent average wholesale electricity prices of roughly £83/MWh.
  • The round uses CfDs with an initial £900m budget for top‑up payments funded via bills, with analysts estimating prices below roughly £94/MWh could be consumer‑neutral.
  • Transmission projects such as NorwichTilbury and Sea Link are scheduled for completion in 2031, raising curtailment risks for new North Sea wind output.
  • Cornwall Insight forecasts about 86% low‑carbon power by 2030, suggesting the 95% target may slip into the mid‑2030s to mid‑2040s.