UK Contracts for Difference Allocation Round 8

in Japanese

The United Kingdom’s eighth Contracts for Difference (CfD) allocation round (AR8)¹ will open for applications on 20 July 2026 and close on 7 August 2026.

The main features of AR8 include unchanged Administrative Strike Prices (ASP), revised grid-connection requirements, the introduction of a new technology category, “Other Deepwater Offshore Wind” and an additional delivery year for floating and Other Deepwater Offshore Wind.

Administrative Strike Prices

ASP, which establishes the maximum bid price for each technology, has been maintained at the AR7 level in 2024 prices.

The maximum prices are:

• • £113/MWh for fixed-bottom offshore wind;
• • £271/MWh for floating offshore wind; and
• • £271/MWh for Other Deepwater Offshore Wind.

According to ORE Catapult, in 2026 prices, the maximum price for fixed-bottom offshore wind is approximately £120, while floating offshore wind and Other Deepwater Offshore Wind are approximately £288/MWh².

Furthermore, maintaining ASPs at AR7 levels may indicate that the government regards project economics as broadly unchanged since the previous round, which commenced on 24 July 2025 with results announced on 14 January 2026. The decision also maintains competitive pressure on developers despite continuing uncertainty over supply-chain costs and geopolitical conditions.

Accordingly, it seems that the commercial viability of bids will depend on developers’ ability to reduce costs and manage project risks.

Offshore wind auction arrangements

Fixed-bottom offshore wind projects will compete in Pot 3.

Floating offshore wind and Other Deepwater Offshore Wind will compete in Pot 4.

Two notable changes have been introduced for floating technologies:

1) Additional Delivery Year³. AR8 introduces an additional Delivery Year for floating and Other Deepwater Offshore Wind projects, providing developers with a wider choice of commissioning window and greater flexibility in scheduling project completion. 

2) Longstop Period extension⁴. For floating projects, the Longstop Period—the contractual period beyond the Target Commissioning Window during which a project must achieve the required level of commissioning before its CfD may be terminated—has been extended from 12 months to 24 months.

This change may reflect the larger scale, more complex construction requirements, and greater supply-chain challenges associated with floating offshore wind and is intended to improve the likelihood that successful projects reach commercial operation.

Notably, the CfD budget determines the volume of projects that may receive contracts, but it does not represent a fixed amount of government expenditure. Actual payments under the CfD scheme depend on the relationship between the agreed strike price and future wholesale electricity prices. When wholesale prices exceed the strike price, CfD generators may be required to return revenue through the scheme.

Introduction of Other Deepwater Offshore Wind

AR8 establishes Other Deepwater Offshore Wind as a new technology category. The category is intended to provide a route to CfD support for innovative foundation concepts that do not meet the existing definition of floating offshore wind. According to AR8 eligibility criteria, eligible projects must meet specified foundation-design requirements and be located in water depths of at least 50 meters.

While the technical details are not yet known, ORE Catapult⁵ has previously said that hybrid concepts would be needed in intermediate water depths of approximately 60–120 meters to cover the transition between conventional fixed-bottom foundations and fully floating systems. Potential hybrid systems could combine characteristics of fixed-bottom and floating offshore wind so that the substructure would be connected to the seabed, as in fixed-bottom wind, while mooring lines or tendons would provide additional stability, as in floating wind. To capture the benefit, however, innovation in installation methodology would also be required.

The inclusion of Other Deepwater Offshore Wind provides a clearer policy route for these technologies. However, floating offshore wind and Other Deepwater Offshore Wind concepts differ in their technological maturity, installation methods, cost structures and commercialization pathways. As such, placing both technologies within the same budget allocation may not fully reflect their different techno-economic characteristics.

Grid-connection requirements

AR8 clarifies the grid-connection position of eligible projects.

Only projects holding a Gate 2 connection offer will be eligible to apply⁶ except provided otherwise. A Gate 2 offer represents a more advanced stage in the connection process and provides greater certainty regarding connection capacity and timing.

Projects holding only a Gate 1 agreement will generally not be eligible. Gate 1 establishes an initial position in the connection process but does not provide the same level of certainty over network capacity or delivery dates.

The purpose of the revised requirement is to ensure that projects receiving CfD support have a credible route to grid connection and commercial operation.

Surrendered CfD capacity

Projects that have previously surrendered CfD capacity awarded in the previous rounds will be restricted from participating in AR8 and subsequent allocation rounds.

This measure is intended to strengthen project commitment and reduce the risk that capacity is awarded to projects that later withdraw from the scheme.

Eligible offshore wind pipeline

ORE Catapult⁷ estimates that 20 offshore wind projects, representing approximately 17.1 GW of capacity, are eligible to participate in AR8.

For fixed-bottom offshore wind, the eligibility approach introduced in AR7 remains in place. Projects without final development consent may apply where a planning application has not been refused before the close of the application deadline.

For floating offshore wind, only consented projects may participate, with 232 MW across three projects currently considered eligible for AR8. ORE Catapult notes that more than 14 GW of additional floating offshore wind capacity is reported to be progressing through the planning system. Although this capacity will not necessarily be eligible for AR8, it indicates the potential scale of the pipeline for future allocation rounds.

Allocation timetable

Following the closure of the application window, projects will undergo a qualification assessment.

The Contract Budget Notice is expected to be published in November 2026. Successful applicants are expected to be notified between late November 2026 and February 2027, depending on the applicable allocation timetable.

Results of AR8 will be announced across all technologies at the same time. This differs from AR7, when the offshore wind results were announced before the results for onshore wind and solar.

Outlook

AR8 retains the main structure of the UK’s CfD scheme while introducing adjustments intended to improve project readiness and to pave a commercial pathway for new technologies.

AR8 maintains the AR7 price level but provides additional time for project delivery for floating and the new Other Deepwater Offshore Wind. The introduction of Other Deepwater Offshore Wind also creates a formal support route for hybrid and emerging Other Deepwater Offshore Wind foundation concepts, which shows the flexibility of the CfD framework in accommodating new technologies.

However, as in AR7, projects in Scotland will face adverse connection charges compared to projects connecting in England and Wales, potentially affecting those projects awarded in Scotwind and INTOG.

The outcome of AR8 will provide a useful indication of the competitiveness of projects within the UK offshore wind development pipeline. In addition, the level of participation in the floating and Other Deepwater Offshore Wind technologies will have implications not only for commercial deployment in the UK, but also for other regions with deeper offshore waters.

Lastly, while AR8 is expected to proceed as planned, the direction of energy policy under the new government warrants close attention.