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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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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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