Particle.news

Download on the App Store

UK Raises Wind Strike Price Ceilings and Lengthens Contracts Ahead of Record Auction

The government set higher price caps with new ministerial bid oversight to attract developers in the face of inflationary pressures

Image

Overview

  • The government raised administrative strike price ceilings to £113 per MWh for offshore wind and £92 per MWh for onshore projects in the 2025 Contracts for Difference auction.
  • Contracts for Difference have been extended from 15 to 20 years to give developers longer revenue certainty.
  • The Energy Secretary can now review developer bids before final auction budgets are set, introducing new ministerial oversight into the procurement process.
  • The reforms aim to revive stalled projects such as Hornsea 4 and Norfolk Boreas by offsetting inflationary and supply-chain constraints.
  • Opposition figures warn that higher strike prices could push up household energy bills while industry groups say the changes are vital to hitting 2030 offshore wind targets.