When the UK Government released the much‑anticipated results of Allocation Round 7 (AR7) on 14 January 2026, the headline figure of 8.4GW of offshore wind capacity captured immediate attention. It's easy to view this announcement simply as another data point in the ongoing rollout of the Contracts for Difference (CfD) scheme. Yet on reflection, AR7 feels like something bigger: a moment that says as much about the direction of the UK's energy journey as it does about the projects themselves.
After a turbulent period marked by AR5’s failure to secure a single offshore wind project and an industry grappling with inflationary pressures, supply chain constraints and volatile global economics, AR7 represents a clear shift in momentum. It is, in many ways, a marker of regained confidence.
A turning point for offshore wind
The AR7 round secured projects across every part of the UK, from Dogger Bank South and Norfolk Vanguard to the vast Berwick Bank development and Wales’s long-awaited Awel y Môr, demonstrating both geographic breadth and market resilience. The weighted average strike price for fixed-bottom offshore wind, at £90.91/MWh, reinforces a continuing trend: offshore wind remains significantly cheaper than new gas generation, estimated at £147/MWh.
The reconfigured 20‑year CfD term introduced in AR7 also signals an evolving policy approach designed to give developers more certainty and to support more sustainable bids over the lifetime of projects.
Investment and supply chains: a confidence rebuild
AR7 is expected to unlock around £22 billion in private investment, creating approximately 7,000 jobs across regions that have long relied on industrial sectors now undergoing transition. Additional analysis points to £3.4 billion of private investment linked directly to AR7, boosted by £204 million of public support for strengthening domestic supply chains and manufacturing capacity.
When seen through a reflective lens, AR7 feels like more than just another procurement round. It resembles a deliberate effort to restore investor faith and re-anchor the UK as a global destination for offshore wind capital. Regions like Scotland, predicted to receive up to £1.1 billion in supply chain investment and thousands of new roles, show how policy can shape economic geography when ambition and investment align.
A broader shift in the UK’s energy story
Looking beyond offshore wind, AR7 invites a wider reflection on the UK's energy narrative.
As electricity demand is expected to more than double by 2050, AR7’s contribution feels like an anchor point in a much larger transformation, one focused on advancing energy security, reducing exposure to volatile global gas markets, and accelerating progress towards the 2030 clean power mission.
Offshore wind continues to sit at the heart of this trajectory. But AR7 also hints at the emerging role of floating wind, with dedicated pot support and successful floating projects clearing at £216.49/MWh - a reminder that innovation remains central even as fixed-bottom capacity scales rapidly.
From a policy perspective, AR7 feels like a stride forward in regaining control over national energy strategy. The Government has been explicit about the role of offshore wind in reducing dependency on volatile fossil fuel markets, which have contributed to profound economic shocks in recent years. AR7’s results can, therefore, be read as part of a broader recalibration of the UK’s energy sovereignty and resilience.
What AR7 means going forward
Reflecting on AR7, three themes stand out for businesses and investors:
- Renewed stability - The round offers a sense of regained balance—crucial for long-term planning and corporate investment strategies.
- Deepening supply chain commitments - With billions set to flow into ports, manufacturing and logistics, AR7 underscores the need for coordinated supply chain scaling across the UK.
- A long-term strategic signal - The UK is not stepping back from offshore wind—it is accelerating.
Final reflections
The AR7 announcement invites reflection on where the offshore wind sector is heading. Against a backdrop of global uncertainty, AR7 reaffirms that the UK remains committed to large‑scale renewable deployment, to revitalising industrial regions and to achieving a secure, low‑carbon energy future.
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