Offshore Wind

Debated on 14 January 2026

The Secretary of State for Energy Security and Net Zero:

With permission, I would like to make a statement about the seventh contracts for difference allocation round and the results for offshore wind. Eighteen months ago, the Government set out on our mission to make Britain a clean energy superpower. That was a mission rooted in a simple argument: if we want to take back control of our energy from the petrostates and dictators, if we want to bring down bills for good and if we want to create a new generation of secure, well-paid jobs, the right choice is to get off the rollercoaster of international fossil fuel markets, which caused the worst cost of living crisis in memory. For a year and a half, that mission has faced determined opposition from a well-funded band of doomsters and defeatists. Today, we publish the results of our latest offshore wind auction and with it we prove those doubters and naysayers wrong. Let me set out the results to the House.

On coming to office, we inherited the fiasco of the fifth allocation round—a failure of the Conservatives’ making that trashed the crown jewels of our energy system—in which not a single offshore wind project was secured. That is their legacy; that is the legacy of the right hon. Member for East Surrey (Claire Coutinho).

Our last auction round, allocation round 6, got the industry on its feet again. Today it roars back stronger than ever. We have secured 8.4 GW of offshore wind, enough to power the equivalent of more than 12 million homes. There are winning fixed offshore wind projects in every part of Great Britain: Dogger Bank South off the coast of Yorkshire and Vanguard off the coast of East Anglia, two of the largest offshore wind farms in the world; Berwick Bank in the North sea, the first new Scottish project since 2022; and Awel y Môr, the first Welsh project to win a contract in more than a decade. On floating wind, the emerging technology of the future, we have successful projects in Wales and Scotland—the Erebus project in the Celtic sea and Pentland in Scotland—backed by pioneering investment from Great British Energy and the National Wealth Fund.

Taken together, that is a record-breaking amount of offshore wind capacity procured in a single auction. It is the most successful offshore wind auction in British history and the most successful ever to be carried out anywhere in Europe. That is what it means to deliver on the promise we made to the British people. Against the backdrop of the global headwinds facing the industry, this is a huge vote of confidence in Britain’s drive for energy sovereignty and abundance.

Let me explain why these results are so important for the country. First, they are a major step forward for our clean energy mission. Alongside our work driving ahead on onshore wind, solar, batteries and nuclear, they put us firmly on track to take back control of our energy and deliver clean power by 2030. We have only to look at events around the world to see that we live in increasingly unstable and uncertain times. Fossil fuel shocks have caused half of the UK’s recessions since 1970. Last year, wholesale gas prices spiked by 15% in a single week after global instability in the middle east. We must also never forget the impact of Russia invading Ukraine; family finances, business finances and the public finances were wrecked as a result of our being left exposed to fossil fuels. This exposure leaves us incredibly vulnerable as a country, and we do not have a moment to waste in ending it. That is why our mission is so important.

Our record-breaking results show that our approach to building things again in this country is working. We are more secure in our energy system today than we were yesterday thanks to these results, and we look forward to building on this momentum as we look ahead to AR8, which we are on track to open later this year.

Secondly, on cost, the results show that offshore wind is cheaper to build and operate than new gas. Today we publish updated estimates of the levelised cost of electricity, the standard industry metric, which includes the cost of building and operating new gas-fired power stations—the same metric as was published under the last Energy Secretary. These estimates show that the cost of building and operating a new gas-fired power station is £147 per megawatt-hour. By contrast, I can inform the House that the average price for fixed offshore wind in today’s auction was £90.91 per megawatt-hour. In other words, it is 40% cheaper than the cost of building and operating new gas, but do not take my word for it. This is what the head of Energy UK, which represents gas, nuclear and renewable generators, said of renewables this morning:

“We need to invest in new power generation, and this is the cheapest form.”

I know that some people want to pull the wool over our eyes on this, but they can only do so by comparing the cost of building and operating new renewables with the cost of operating but not building new gas.

Here is the reality: faced with years of under-investment in our energy system under the previous Government, and with power demand set to increase by at least 50% by 2035 and to more than double by 2050, there is no alternative to building new energy infrastructure in this country. We can choose to stop building renewables and just build new gas plants, as the Conservatives want to, but it is clear that offshore wind remains significantly cheaper to build and operate. Credible, independent research confirms that the renewables that we have already built are bearing down on wholesale electricity costs, having reduced wholesale prices by a quarter in 2024. Our mission is right: clean power is the route to bringing down energy bills for good.

Thirdly, today’s auction cements the offshore wind industry’s position as a jobs and growth engine for Britain. It is at the heart of our industrial strategy. These projects will unlock £22 billion in private investment and support at least 7,000 good jobs across the country, from the Scottish highlands to the Suffolk coast. Members across the House know that so many people in our country ask where the good jobs of the future, for themselves and their children, will come from. Clean energy is central to the answer. The previous Government failed to act to ensure that offshore wind generated jobs and supply chains in this country. By contrast, we will use every tool at our disposal to ensure that turbines, foundations and cables are made and built in Britain, creating good, well-paid jobs with strong trade unions. That is why this auction, for the first time, included a clean industry bonus to reward investment in ports and factories in the areas that need it most.

I can inform the House that in this auction, the industry has responded with ambition. The clean industry bonus will crowd in billions of pounds of private investment and support thousands of jobs in supply chains across the country. We look forward to setting out the full results in due course, as we drive forward on the 100,000 offshore wind jobs that our mission will support by 2030.

Let me close by saying that Britain faces a choice over the coming years. We can seize the opportunities of clean, home-grown energy to cut bills and create jobs, or we can double down on our exposure to fossil fuels. In calling for us to cancel this auction, our opponents made their choice: they are setting their face against cheaper, clean, home-grown power, against 7,000 jobs supported today and thousands more to come, against taking back control of our energy sovereignty, and against action on the climate crisis to protect our children and grandchildren. This Government have made our choice: we choose energy security, lower bills, good jobs and the climate. I commend this statement to the House.

Henry Tufnell:

This is a fantastic announcement for Mid and South Pembrokeshire, as it enables Wales’s first floating offshore wind farm. How will the Secretary of State work with developers to maximise their use of local supply chains, so that communities such as mine can see the real benefits in jobs and local economic growth?

Ed Miliband:

I congratulate my hon. Friend, because he has been a brilliant champion of this industry, and I am so glad about today’s announcement. He is absolutely right. I want developers and all of the businesses involved to hear his message and his question loud and clear: we want to see this development built in Britain, and it is incredibly important that we work with those businesses, and we will, to ensure that it happens.