ENERGY BONANZA: Offshore wind gets AR7 turbo-charge with boost for Berwick Bank 

The biggest single procurement of offshore wind energy in British and  European history – known as AR7 – has been announced. It’s a massive flag being planted in 2026.

A record 8.4GW of offshore wind has been secured in Europe’s biggest offshore wind auction – with the promise of clean electricity to power the equivalent of over 12 million homes.

The UK Government says it will unlock £22bn in private investment and support 7,000 jobs, across the UK and especially in Scotland. SSE will be investing in the second stage of its massive Berwick Bank array, which is visible from the shoreline on the top of Edinburgh’s Arthur Seat.

Energy minister Ed Miliband said: “The Government inherited the fiasco of the previous government’s failed Auction Round 5, in which not a single offshore wind project was secured. The last auction round, AR6, got the industry back on its feet. Now this auction round, known as Contracts for Difference AR7, has secured a record capacity of 8.4GW of offshore wind which will generate enough clean electricity to power the equivalent of 12 million homes. The ground-breaking result puts Britain firmly on track to achieve its clean power mission by 2030.” 

Nevertheless, there is still massive controversy over the production of energy from existing windfarms which are not yet connected to the national electricity grid and are costing hundreds of millions to switch off turbines already in the North Sea. The race is on to connect these assets for an update grid. 

New figures using the LCOE industry metric, the cost of building and operating a new gas fired power station is £147 per megawatt hour. 

By contrast, the results for fixed offshore wind in the auction were £90.91 per megawatt hour on average – or £65.25 in the commonly used benchmark of 2012 prices – 40 per cent cheaper than the cost of building and operating new gas.

THE KEY PROJECTS IN AR7 

Projects are:  

• Berwick Bank in the North Sea – the first new Scottish project since 2022 and the largest planned offshore wind project in the world;
• Dogger Bank South off the coast of Yorkshire and Norfolk Vanguard off East Anglia – two of the largest offshore wind farms in the world, supporting thousands of jobs;
• Awel Y Môr – the first Welsh project to win a contract in more than a decade.

The projects are backed by Great British Energy and the National Wealth Fund.

Ed Miliband added: “With these results, Britain is taking back control of our energy sovereignty. This is a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators.

“It is a monumental step towards clean power by 2030 and the price secured in this auction is 40 per cent lower than the alternative cost of building and operating a new gas plant. Clean, homegrown, power is the right choice for this country to bring down bills for good and this auction will create thousands of jobs throughout Britain.”

Neil McDermott, CEO at the Low Carbon Contracts Company (LCCC), said: “The results from this allocation round are a prime example of the Contracts for Difference mechanism’s greatest strengths, providing certainty for investors and supporting British jobs across the country. 

“At LCCC, we’re proud of our role in managing these contracts, adding to our existing operational portfolio of more than 10 GW with an additional 25 GW in the pipeline, and providing stewardship of these projects for the next two decades.

ON BERWICK BANK WIND FARM

SSE has successfully secured a 20-year contract for 1.4GW of low carbon offshore wind power from Phase B of its Berwick Bank Wind Farm project in the UK’s seventh CfD Allocation Round. 

The contract for Berwick Bank B marks the only successful CfD award to a Scottish fixed-bottom offshore wind project in this auction round and follows the decision by the Scottish Government in July 2025 to grant a consent order for the full project’s offshore wind farm array.

Berwick Bank B will receive the guaranteed strike price of £89.49/MWh for 1,380MW of offshore renewable energy capacity, based on 2024 prices, but annually indexed since then for CPI inflation, for the contracted low carbon electricity it will generate for a 20-year period.

SSE will now progress Berwick Bank B towards a final investment decision in line with hurdle rates and investment criteria, expected in 2027.

Located in the outer Firth of Forth around 38km east of the Scottish Borders coastline, SSE’s Berwick Bank Wind Farm is targeting the delivery of 4.1GW of offshore wind capacity in total across three roughly equal phases. 

Martin Pibworth, Chief Executive of SSE plc, said: “We are delighted Berwick Bank B has been successful in AR7 and has secured a CfD for 1.4GW of essential new low-carbon power for the UK at a competitive price for consumers. This milestone enables us to advance the project towards a final investment decision and reinforces our commitment at SSE to delivering sustainable growth and long-term value for society, for consumers and for our shareholders.

 “If built to its full projected capacity of more than 4GW, Berwick Bank Wind Farm can rank among the largest offshore wind projects globally. It would represent the single most significant contribution toward achieving the Scottish and UK Governments’ offshore wind targets and can accelerate the delivery of homegrown, affordable, and secure clean energy to UK consumers from excellent Scottish offshore wind resources.”

RWE AND KKR BENEFIT FROM UK ENERGY BONANZA

German energy company RWE, one of the leading renewable energy companies, and KKR, a leading global investment firm, have agreed on a long-term partnership to jointly build the Norfolk Vanguard East and Norfolk Vanguard West projects.

Under the agreement, KKR will acquire a 50 per cent equity stake in each project, with both partners jointly developing, constructing and operating the wind farms. Closing of this transaction is subject to customary approval and expected in summer 2026.

Markus Krebber, CEO of RWE AG: “We are delighted to have been successful in securing long-term offtake contracts for five projects in AR7. In addition, we are excited to join forces with KKR as our strategic partner in the Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects. By combining KKR’s investment know-how in large-scale, complex infrastructure projects with RWE’s extensive offshore wind expertise, we are well positioned to jointly realise these major projects. With the Dogger Bank South projects and our renowned partner Masdar, we are experiencing firsthand the value of strong partnerships. And at Awel y Môr, we are proud to collaborate with Stadtwerke München and Siemens, who bring their expertise and commitment to our shared success. With the successful outcome of AR7, and the agreed partnership with KKR, RWE has reached key milestones in executing its UK offshore wind development pipeline.”

Vincent Policard, Co-Head of European Infrastructure at KKR, said: “This investment underscores our conviction in the long-term importance of UK renewables and the central role offshore wind will play in advancing the country’s energy transition. By leveraging our complementary strengths – RWE’s world-class development expertise and KKR’s expertise in investing and owning large scale construction and renewable projects – we are helping deliver a significant addition to the UK’s future offshore wind capacity and support the UK in its decarbonisation journey.”

Since 2011, KKR’s Infrastructure platform has committed more than $31 billion into energy transition and renewables infrastructure globally. KKR’s portfolio also includes over 10 renewable energy developers.