LCCC Signs Over 200 CfDs for 14.7 GW of UK Renewables in AR7

The Low Carbon Contracts Company (LCCC) has signed over 200 Contracts for Difference (CfDs) from the seventh Allocation Round (AR7) and its supplementary round (AR7a), covering a total of 14.7 gigawatts (GW) of renewable generation capacity in the United Kingdom. The volume represents a significant increase compared to previous auction rounds, according to the organisation. Technologies awarded include fixed-bottom offshore wind, floating offshore wind, onshore wind, solar and tidal stream power. Taiwan is simultaneously launching its third offshore wind selection round for 3.6 GW, illustrating the global momentum in renewable energy auctions.

Technology breakdown and strike prices

Fixed-bottom offshore wind accounts for the dominant share with 8.2 GW awarded at a weighted average strike price of £90.91/MWh. Solar reaches 4.9 GW at £65.23/MWh and onshore wind totals 1.3 GW at £72.24/MWh. Cherry Valley Solar I has closed financing for 135 MW of photovoltaic capacity in Arkansas, reflecting global investor appetite for such assets. These CfDs provide developers with revenue visibility over 15 to 20-year terms.

Among the successful projects is Phase B of the Berwick Bank Offshore Wind Farm, with a capacity of 1.4 GW, forming part of a 4.1 GW overall development off the east coast of Scotland. At full build-out, this development would become the world's largest offshore wind farm, according to SSE Renewables. AR7 also includes West Burton Solar Farm, identified as the UK's largest solar project to receive a CfD.

Contract digitalisation through the Zero platform

To process this record volume, LCCC mobilised a dedicated team and deployed its in-house digital platform, Zero. The tool centralises all CfD contractual obligations, from initial creation through long-term management, within a single interface. Regulations require each contract to be issued and countersigned within ten business days of an allocation result. LCCC states it met this requirement across all 200-plus contracts signed.

"AR7 demonstrates the continued strength of the CfD mechanism in delivering low-carbon electricity," said Dan Sadler, Director of Scheme Delivery at LCCC. Steve Wilson, Director of Offshore Development and Construction at SSE Renewables, described the signing as a further step toward delivering "1.4 GW of low-carbon power at a competitive price" for UK consumers. Matt Hammond, Real Assets Partner at Foresight Group representing West Burton Solar Farm, highlighted contractual stability as an essential condition for long-term capital deployment.

AR8 set to open in July

The UK government has announced its intention to expedite the timeline for the eighth Allocation Round (AR8), scheduled to open in July. LCCC states it is working to replicate the efficiency gains achieved during AR7. As the sole counterparty to all CfDs, the company administers these contracts over their full 15 to 20-year terms, a framework its leadership presents as a confidence factor for long-term investors.