llustration/Morlais Demonstration Zone (Courtesy of Marine Energy Wales/Archive)

UK opens Allocation Round 7 for contracts for difference scheme

Regulation & Policy

The UK government opened the application window for Allocation Round 7 (AR7) of the Contracts for Difference (CfD) scheme on August 7, 2025. The window will remain open until August 27, 2025.

llustration/Morlais Demonstration Zone (Courtesy of Marine Energy Wales/Archive)

The CfD scheme has so far supported 10 GW of renewable capacity, with another 23 GW contracted to be operational by 2030. AR7 through AR9 are considered to be critical to meeting the UK’s target of delivering clean power by 2030 and reducing reliance on volatile fossil fuel prices.

According to the Allocation Round Resource Portal, applications for AR7 must be submitted via NESO’s EMR CfD Portal. Guidance on the application process is available on the scheme’s publications page.

AR7 timelines depend on the presence or absence of appeals following the assessment of applications. Detailed dates for results are available in the official timetable.

The UK’s Department for Energy Security and Net Zero issued the statutory notices for AR7 and Allocation Round 7a (AR7a) on July 23, 2025, confirming changes to pricing and contract structure under the CfD scheme.

These notices make legally binding changes to strike price parameters, contract lengths, inflation indexation, payment mechanisms, and delivery milestones. The updates set the financial and legal framework for all participants in these rounds.

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