The UK Launches AR7, the Next Phase in Renewable Energy Development

Today, August 7, marks the official opening of the window for the first phase of AR7, the UK’s latest solicitation for renewable energy projects. This round is considered crucial in the country’s energy ambitions, with the government taking significant steps to support the industry and generate strong interest.

AR7 kicks off with a 20-day period for eligible developers to submit their initial applications. These applications will be evaluated in September, and the final deadline for bids is expected to fall between late October and early January 2026. Results will be announced approximately a month after the bidding process concludes.

UK’s Renewable Energy Progress

The UK has made significant strides in renewable energy through its Contracts for Difference (CfD) scheme, delivering over 10 GW of capacity that is currently operational. The country boasts 14.7 GW of offshore wind capacity, making it the largest in Europe and second only to China. In July, it was reported that over 50% of the UK’s electricity was sourced from renewable energy for the first time. With an additional 23 GW of offshore wind capacity set to come online by 2030, the UK is on track to achieve its target of 50 GW.

Importance of AR7

Industry analysts emphasize the critical nature of AR7 in helping the UK meet its renewable energy objectives. Following a lack of bidders in round 5 in 2023, the government took steps to enhance support mechanisms and accelerate the transition. The budget allocated to AR7 exceeds £544 million ($730 million), with key measures including extending CfD contract durations to 20 years and adjusting strike prices to align with market conditions.

WindEurope’s Director of Advocacy and Messaging, Viktoriya Kerelska, commended the UK’s adjustments to auction parameters, noting the importance of facilitating viable projects to drive wind farm development and enhance energy security and competitiveness.

Challenges and Setbacks

Despite its efforts, the UK has faced challenges in its renewable energy journey. Recent news of a German solicitation receiving no bids and Ørsted discontinuing the Hornsea 4 project due to cost and timeline concerns underscore the complexities of the industry. WindEurope has urged the UK to establish a long-term auction schedule to provide developers and supply chain companies with stability and confidence.

As the AR7 process unfolds, industry stakeholders will closely monitor the outcomes and implications for the future of renewable energy in the UK.