For those in the renewable energy sector, the Contracts for Difference (CfD) scheme is the financial backbone of Britain’s clean power future. For those outside it, it can sound like a plotline written by a committee of economists after too much coffee. Yet behind the acronym lies one of the most powerful policy tools driving investment in low carbon generation.
And, crucially, one of the richest storytelling opportunities for developers looking to stand out in a crowded and highly scrutinised market.
The CfD scheme provides long-term price certainty for renewable electricity generators by guaranteeing a fixed strike price for the power they produce. When wholesale prices fall below that level, the scheme tops up the difference. When they rise above it, developers pay back the excess. The result is a mechanism that reduces exposure to volatile energy markets and makes large-scale investment bankable.
That stability has helped transform the UK into a renewables powerhouse. From vast offshore wind farms to rapidly expanding solar arrays, CfDs have underpinned billions of pounds of investment and thousands of jobs. Yet, as every developer knows, the landscape is shifting again.
A new round, a new rhythm
The government’s seventh Contracts for Difference allocation round, AR7, is now in motion. For offshore wind projects, the results are expected between the second half of December 2025 and the second half of February 2026, depending on appeals. For other technologies, announcements will likely arrive in late 2025 or early 2026.
The financial and policy adjustments introduced for AR7 have real implications for how developers position themselves. The contract term for many key technologies is being extended from fifteen to twenty years. That means longer revenue certainty for investors but also a longer period of public expectation. A project’s reputation will now have to last for two decades, so consistency and transparency in communication will be vital.
Maximum strike prices have been raised, with offshore wind seeing an increase of around 11% to reflect cost pressures and inflation. While this will come as a relief to developers, it also attracts fresh attention. The public will want to understand why prices are rising and what this means for consumers. Developers will need clear, credible explanations to build trust and demonstrate value.
There are also changes to eligibility. Some fixed-bottom offshore wind projects can now apply even without full planning consent, subject to certain conditions. This creates flexibility but also invites scrutiny about deliverability and environmental responsibility. Communicating progress and managing expectations will be essential for maintaining confidence among investors, regulators and the public.
Perhaps the most significant structural change is the introduction of separate timelines for offshore and non-offshore wind technologies. This signals that the government wants to accelerate deployment in offshore wind while maintaining fairness across other technologies.
The opportunity ahead
Allocation Round 7 represents a defining moment for the UK’s renewable sector. The government is recalibrating policy to keep investment flowing, strengthen supply chains and accelerate delivery. Developers are gearing up for a competitive process that will shape the energy landscape for the next decade. At the same time, public interest in clean energy has never been higher, and neither has scrutiny.
When results are announced, some projects will find themselves front and centre of national headlines. Those who have invested in their communications now will already have the credibility, goodwill and clarity to make the most of that spotlight.
At BIG, we believe the CfD may guarantee a price, but it is strong communication that guarantees confidence. Our experience in energy means we understand both the policy detail and the public mood. We know how to explain a strike price without sounding like a textbook and how to make a grid connection date sound like a milestone worth celebrating. The countdown has already begun. Now is the time to prepare your narrative and ensure that when your project powers up, your story does too.
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