UK Offshore Wind Auction Awards Record 8.4 GW Capacity at Prices 40% Below Gas

The UK just pulled off one of its most consequential offshore wind auctions yet – delivering massive volumes of new capacity at prices that undercut gas.

In its latest offshore wind allocation round (AR7), the UK awarded a record 8.4 gigawatts (GW) of offshore wind capacity, making it the largest-ever offshore wind auction in Europe.

And it came in cheap. Thanks to intense competition and falling costs, the winning bids came in at around £44 per megawatt-hour (MWh) – about 40% cheaper than the current price of gas-fired electricity.

The record-low prices will save consumers nearly £1.7 billion a year compared to gas generation, according to government estimates.

The auction results mark a major milestone in the economics of renewable energy, demonstrating that offshore wind can now compete directly with fossil fuels on price.