Government Invites Bids for New Clean Power Deals in Drive Toward 2030 Goals

The UK government has opened the application window for the seventh round of its renewable energy auction process, known as AR7. This round is expected to be the largest since the programme began in 2014, with the contracts awarded forming a central pillar of the government’s ambition to deliver an immaculate power system by 2030.

To meet the capacity goals outlined in the Clean Power 2030 Action Plan, at least twelve gigawatts will need to be secured across AR7, AR8 and possibly AR9, depending on how quickly projects can be deployed.

Around 29 gigawatts of capacity are eligible for this round, and there will be no technology-specific limits on the amount that can be awarded.

The auction could follow one of five different timelines. The application window will close on 27 August. Under the most accelerated schedule, sealed bids would be submitted between 21 and 27 October this year. If appeals are lodged after any rejections, the process could stretch out, with the most extended timeline seeing bids submitted between 5 and 9 January 2026.

This year’s round will be supported by the largest budget in the scheme’s history. However, the reformed process no longer uses a direct monetary figure. Instead, Energy Security and Net Zero Secretary Ed Miliband has set what he calls a “capacity ambition.” AR7 will also offer twenty-year contracts, up from the fifteen-year terms in previous rounds. Miliband says the aim is to build on the momentum of last year’s AR6, which secured a record 9.6 gigawatts of capacity.

One of the most crucial factors determining whether a project will proceed is securing a grid connection. Under the Contracts for Difference rules, developers must nominate a target commissioning window that matches the delivery years of the allocation round. In the past, projects had to be commissioned within three months of that date to avoid reduced payments. AR7 will extend that grace period to twelve months, a move that could prove critical for developers navigating current grid access challenges.

This adjustment comes at a time when many in the industry are voicing frustration with the National Energy System Operator’s new application portal, which is being used for Gate 2 under its grid connection reforms. The Low Carbon Contracts Company has indicated that these issues will be taken into account when drawing up final contracts.