Lucy Dolton, Renewable Generation Lead at Cornwall Insight:
“The outcome of AR7a will give the UK a much needed surge in momentum as it pushes toward secure, homegrown energy. The 1.3GW capacity of onshore wind and 4.9GW of solar projects proves that investors are still choosing the UK as a place to commit capital.
“These investments ultimately strengthen the UK’s position against volatile gas markets. If the past few years have shown us anything, it’s that remaining tied to international energy markets comes with consequences.
“The challenge now is delivery. 2.5GW of the winners have a delivery year of 2027/28, and 3.7GW have a delivery year of 2028/29, which brings them very close to the government’s 2030 clean power target. Historically, renewable projects in the UK have faced delays often due to grid connection backlogs and planning holdups. With AR7 and some of AR8 representing the only realistic pipeline for pre-2030 capacity, keeping to schedule will be essential.
“To fully realise the value of this new capacity, we will need rapid expansion of storage assets and a strengthened grid, to ensure electricity can move to where it is needed. The new first-ready, first-connected approach to connections, coupled with reforms to flexibility contracts to manage the system, aim to realise this, but changes will take time.
“AR7 is a step forward, but its impact will depend on the UK’s ability to deliver these projects on time, get the grid ready, and build the storage to support them.”
Getting ready for AR8? Find out more about our CfD Support Service (GB), designed for applicants of the Contracts for Difference scheme, providing all the need-to-know information and analysis on the auction process.
