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.