DESNZ issues Contract Budget Notice for Contracts for Difference Allocation Round 7
The Department for Energy Security and Net Zero (DESNZ) has published the Contract Budget Notice and accompanying explanatory note for the seventh Contracts for Difference (CfD) Allocation Round (AR7). The notice, issued under Regulation 11 of the Contracts for Difference (Allocation) Regulations 2014, establishes the overall budget and delivery parameters for offshore wind and floating offshore wind projects under AR7. The overall budget available is £1.08bn (2024 prices), comprising £900m for offshore wind (Pot 3) and £180m for floating offshore wind (Pot 4). Delivery years have been set for 2028/29 to 2030/31 (Pot 3) and 2028/29 to 2029/30 (Pot 4), with CfD support awarded for 20 years. DESNZ has also issued related statutory notices covering the pot structure and administrative strike prices (ASPs), standard terms, application window, counterparty costs, contract framework, and clean industry bonus (CIB) framework. These collectively give effect to the launch of AR7 and AR7a (the subsequent round covering non-offshore wind technologies).