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Offshore wind strike price to rise 66% to £73/MWh for AR6

Renewable Energy

On Thursday 16 November, DESNZ announced that the maximum strike price has been increased by 66% for offshore wind projects, from £44/MWh to £73/MWh, and by 52% for floating offshore wind projects, from £116/MWh to £176/MWh ahead of Allocation Round 6 (AR6) of the Contracts for Difference (CfD) scheme next year. In addition, offshore wind will also be given a separate funding pot in AR6 in recognition of the high number of projects ready to participate.

Following the announcement, DESNZ published the methodology used to set Administrative Strike Prices (ASPs) for CfD AR6. On the same day, it published the draft Allocation Framework for AR6, which sets out the rules and eligibility requirements that applicants must satisfy, and the core parameters for AR6, including the pot structure, ASPs and delivery years. It noted that the final Budget Notice containing full details on AR6 auction parameters will be published in March 2024.