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Blown away, CfD Round 3 delivers record low price for offshore wind

CfD Round 3 results

UK Government announces record low prices for offshore wind with the results of the CfD Round 3 auction.

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Simon Virley - Partner and Head of Power and Utilities

Partner and UK Head of Energy & Natural Resources

KPMG in the UK

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Contract for Difference subsidiary auction - wind turbine

Key points

  • The UK’s Third Contracts for Difference (CfD) auction has cleared at the record low price of £39.650/MWh for Delivery Year 2023/24 and £41.611/MWh in 2024/25 (2012 real).
  • Six offshore wind, four remote islands wind and two Advanced Conversion Technology projects secured contracts.
  • Government has secured 5.8GW of new capacity, without spending a penny of the £65m budget.
  • This increases the challenge faced by other low carbon technologies to match the cost reductions achieved by offshore wind.
  • The results open up the possibility for offshore wind to play a greater role in delivering Net Zero by 2050.

Download our report for further insight on the outcomes of the subsidiary auction.

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