The UK’s Department for Energy Security & Net Zero has opened the application window for the seventh allocation round of the Contracts for Difference (CfD) program. This round has been divided into the offshore wind and non-offshore wind categories.

Applications must be submitted by August 27, 2025. Applicants for both offshore wind and non-offshore wind categories will be informed of their eligibility on September 26.

CfD is the country’s main mechanism for aiding the deployment of low-carbon electricity. The program incentivizes renewable energy investment and reduces capital costs by providing project developers with high upfront costs and long lifetimes. It also provides direct protection from volatile wholesale electricity prices.

These features also protect consumers from increased support costs during high prices.

Under the program, UK-based developers who are successful in the auction rounds will sign CfDs with the Low Carbon Contracts Company, which helps implement low-carbon investment programs. Developers whose projects have started generating electricity will receive a flat payment for the amount generated over 15 years.

The latest CfD round aims to become the largest to date. Allocation rounds seven to nine are considered critical for the country’s 2030 clean energy goals and protecting households from volatile fossil fuel prices.

The program and its predecessor investment contracts have delivered 10 GW of renewable capacity. Another 23 GW is expected to become operational by 2030.

Applications can be submitted through the National System Operator’s EMR CfD Portal.

The seventh allocation round will follow one of five potential timeline scenarios. The timelines used will depend on whether there are any appeals following the applications’ assessment.

Last year, the UK allocated CfDs to 131 new renewable energy projects, securing a substantial 9,648.26 MW of clean energy capacity in its sixth allocation round. This marks a significant increase from the 95 projects awarded CfDs in the previous round. The awarded projects span a range of renewable energy sources, including onshore, offshore, and floating wind, solar, and tidal energy.