The UK just secured enough renewable energy to power 16 million homes – and it’s over 50% cheaper than gas
The UK has achieved a major milestone in its push for clean energy independence, securing a record-breaking 14.7 gigawatts (GW) of new renewable power through the latest Contracts for Difference (CfD) Allocation Round 7 (AR7).
The outcome, announced by the government on Tuesday (10 February), will generate enough homegrown clean electricity to power the equivalent of 16 million homes, a significant step toward lowering energy bills and reducing reliance on volatile global gas markets.
The results combine the recent offshore wind successes from January with the latest awards for solar, onshore wind, and tidal stream projects. In total, 201 projects were successful – the largest number and highest capacity ever awarded in a single CfD round. This includes:
- A record 4.9 GW of solar PV from 157 projects – the biggest-ever solar procurement in the UK.
- 1.3 GW of onshore wind from 28 projects.
- 20.9 MW of tidal stream from 4 projects.
- 8.4 GW of offshore wind (fixed-bottom and floating) from 12 projects.
The government said that these developments will unlock an additional £5 billion in private sector investment and support up to 10,000 jobs across the country.
Costs to be passed down to consumers
What makes this particularly impactful for consumers is the dramatic cost advantage over traditional gas power. New onshore wind secured a strike price of £72.24 per megawatt-hour (MWh), while solar came in at £65.23/MWh – both well under half the estimated £147/MWh cost of building and operating new gas-fired power stations.
This represents over a 50% saving compared to gas, positioning renewables as the clear economic winner for Britain’s energy future.
“These results show once again that clean British power is the right choice for our country, agreeing a price for new onshore wind and solar that is over 50% cheaper than the cost of building and operating new gas,” said Energy Secretary Ed Miliband.
“By backing solar and onshore wind at scale, we’re driving bills down for good and protecting families, businesses, and our country from the fossil fuel rollercoaster controlled by petrostates and dictators. This is how we take back control of our energy and deliver a new era of energy abundance and independence.”
The auction builds on the government’s broader strategy, including the Clean Power 2030 mission and initiatives like the Warm Homes Plan for energy efficiency upgrades. By prioritising homegrown renewables, the UK aims to shield households from international fossil fuel price shocks, which have historically contributed to economic downturns, while accelerating the transition to net zero.
Notable projects include the Imerys Wind Farm (the largest onshore wind development in England in a decade), Sanquhar II Wind Farm (one of the UK’s biggest onshore sites), and the West Burton solar farm (the largest solar project ever to secure a renewables contract, repurposing a former coal site).
As these projects come online in the coming years, they are expected to help drive down wholesale electricity prices and deliver long-term savings on household bills, reinforcing the case for renewables as the affordable, secure path forward for UK energy.
