The UK Government has secured a record-breaking 8.4 gigawatts (GW) of offshore wind capacity in Europe’s largest ever renewables auction, enough to generate the equivalent electricity for the power needs of over 12 million homes. This result marks a significant advance toward the government’s clean power by 2030 goals and represents a major shift in how Britain produces and pays for electricity.
Crucially, the average price agreed in the auction is about £90.91 per megawatt-hour (MWh) — roughly 40 per cent lower than the cost of building and operating a new gas-fired power station, estimated at around £147/MWh. This shows offshore wind is not only a climate solution but a cost-competitive alternative to fossil fuels with the potential to reduce long-term energy costs for consumers and businesses.
The income-support model used — the UK’s Contracts for Difference (CfD) scheme — locks in prices for projects, giving investors certainty while protecting consumers from volatile global fuel markets. By reducing dependence on imported gas and oil, offshore wind also strengthens energy security and helps shield the UK from international price shocks.
Alongside this capacity boost, the auction is expected to unlock around £22 billion in private investment and support roughly 7,000 jobs across the UK, from Scotland and Wales to East Anglia.
While short-term bill impacts depend on market conditions, the long-run outlook is promising: as more renewables come online and set the wholesale price, average energy costs should decrease compared with continued reliance on gas prices, which have historically been volatile and high.
This auction sets a new benchmark for clean, homegrown power that is cheaper than fossil alternatives and more stable for British consumers.
