Building offshore wind farms remains one of the most capital-intensive forms of renewable energy development. For these projects to proceed, significant external investment is required. However, the financial landscape is complex, as both project costs and long-term returns (via energy prices) are highly unpredictable. This makes offshore wind a challenging investment prospect.

To address this, the UK Government offers support through the Contract for Difference (CfD) mechanism, which guarantees a fixed price for the electricity generated. This financial certainty significantly reduces investment risk and encourages the development of new offshore wind projects.

In 2025, this support will be allocated through the 7th Allocation Round (AR7), a pivotal moment for the UK’s offshore wind ambitions. A strong outcome in AR7 is essential if the country is to stay on track to meet its target of 43 to 50 GW of offshore wind capacity by 2030.

Past allocation rounds have not delivered the results needed. Notably, AR5 in 2023 saw no CfDs awarded, casting doubt over the pace of progress. With that in mind, AR7 is viewed as a make-or-break moment for the industry.

AR7 introduces several important changes to the CfD process. While these adjustments aim to improve project viability and increase the number of successful bids, they also present new challenges for developers as they navigate the more complex application landscape. A detailed overview of AR7’s changes can be found in Energy UK’s explainer.

At SLPE, we understand the pressures developers face at every project stage. Whether you're preparing concept-level foundation designs to secure investment or optimising detailed designs to control costs, our expert team is here to support you. Using industry-leading software and deep engineering expertise, we deliver cutting-edge monopile and jacket foundation designs tailored to the needs of your offshore wind development.

To learn more about how SLPE can support your project through AR7 and beyond, get in touch with our team today.