Earlier this week, the UK Government published the final pot structure and Administrative Strike Prices (ASPs) for the upcoming Contracts for Difference Allocation Round 8 (AR8). Similar to AR7, the government will not disclose the AR8 budget until after applications have been assessed. This approach is intended to support increased deployment while ensuring competitive bids deliver value for money for consumers. 

Notably, the government has opted to freeze AR8 ASPs at AR7 levels (in 2024 terms), suggesting a view that project economics have remained broadly unchanged since the previous allocation round.  

By keeping ASPs static, the government seems to be signalling a preference for competitive, market-driven pricing over adjusting for potential inflation in supply chains caused by recent geopolitical disruptions. Developers’ ability to bid profitably may depend on a sharper focus on cost reduction strategy. AR8 ASPs for offshore technologies are listed in Table 1, in both 2024 and 2026 terms.

Administrative Strike Price
Technology	AR8 (2024 terms, £/MWh)	AR8 (2026 terms, £/MWh)
Offshore Wind	113	120
Floating Offshore Wind	271	288
Other Deepwater Offshore Wind	271	288
Tidal Stream	371	395

Table 1: AR8 ASPs

AR8 Parameter Highlights

The pot structure for AR8 has been expanded to five pots. These include dedicated pots for solar PV; onshore wind and remote island wind; offshore wind; and floating offshore wind and other deepwater offshore wind. A fifth pot is in place for emerging and less-established technologies.  

A notable change in AR8 is the inclusion of “Other Deepwater Offshore Wind” (ODOW) alongside Floating Offshore Wind (FOW) within a shared pot. To qualify, ODOW projects must meet specific foundation design requirements and be located in waters with a minimum depth of 50m. 

While recognising non-fixed foundation technologies is a positive development, the decision to group them within a single pot may overlook the distinct techno-economic characteristics of each technology. Floating offshore wind and other deepwater offshore wind technologies differ in both deployment pathways and levelised cost of energy (LCOE) profiles. Floating wind remains at a different stage of technological maturity than emerging deepwater concepts, meaning the two technologies face different cost and commercialisation challenges. Despite these differences, they will now compete for the same budget allocation. 

However, the explicit recognition of ODOW as a distinct category represents an important step in establishing clearer policy visibility for the technology. Its inclusion in AR8 provides a strong signal of future support and may enable ODOW to achieve greater differentiation from other competing technologies in subsequent auctions as the market develops. 

Bid stack visibility has also been expanded to apply across Pots 1 to 4, meaning that both floating offshore wind and other deepwater offshore wind are now included, alongside solar PV, onshore wind, remote island wind, and offshore wind. This allows the Secretary of State to see bids that exceed the initial budget and, if appropriate, increase the budget to secure additional projects across these technologies. Any bids for less-established, emerging technologies made in the fifth pot will not be visible. 

AR8 eligibility has been restricted to projects holding signed Gate 2 connection agreements, as part of NESO’s Connections Reform, linking CfD participation more closely to grid readiness. The change is intended to prioritise projects with a more certain route to delivery and reduce the risk of awarding contracts to projects facing unresolved grid connection uncertainty.  

Another change introduced for AR8 is the addition of an extra delivery year. This has been applied to onshore wind; remote island wind; solar PV; floating offshore wind; and other deepwater offshore wind, giving these technologies three available delivery years. The introduction of an additional delivery year provides greater flexibility for developers, helping to manage construction and supply chain risks while increasing the likelihood that awarded projects reach delivery. The expanded pot structure and delivery years are outlined in Table 2. 

Pot	Technologies	Delivery Years
Pot 1	Solar PV	2028/29, 2029/30, 2030/31
Pot 2	Onshore Wind; Remote Island Wind	2028/29, 2029/30, 2030/31
Pot 3	Fixed-Bottom Offshore Wind	2029/30, 2030/31, 2031/32
Pot 4	Floating Offshore Wind; Other Deepwater Offshore Wind	2029/30, 2030/31, 2031/32
Pot 5	Geothermal; Hydro; Tidal Stream; Wave; and other emerging technologies	2029/30, 2030/31

Table 2: AR8 pot structure and delivery years

Finally, offshore wind will continue to have separate clearing prices, with Scottish projects priced separately from those in England and Wales, consistent with the change introduced for AR7. 

Overall, AR8 represents a mixed outcome for offshore wind developers. The formal recognition of ODOW as an eligible technology is a positive step, providing a route to market for emerging deepwater concepts. However, placing ODOW and Floating Offshore Wind within a shared pot introduces uncertainty given the differing technology maturity, cost profiles and deployment challenges. The decision to maintain ASPs at AR7 levels provides some stability and predictability for the sector, but with continued inflationary pressures, supply chain constraints and a challenging geopolitical environment, developers may face tighter margins when submitting bids. Conversely, the requirement for signed Gate 2 connection agreements and the introduction of an additional delivery year should improve confidence that awarded projects are deliverable, reducing grid-related uncertainty and providing greater flexibility for projects progressing through development. 

AR8 Eligible Projects

A total of 20 projects are eligible to bid in AR8, representing 17.1GW of capacity. As introduced in AR7, unconsented fixed-bottom projects may still apply for a CfD provided they have either had a planning application accepted or commenced public consultation at least 12 months before the opening of the CfD application window. Under this rule, both Caledonia North and the fixed-bottom element of Caledonia South (around 1.7GW in total) are eligible to bid despite awaiting planning consent. All eligible projects are outlined in Table 3. 

Following the award of just under 200MW of floating offshore wind in AR7, a further 232MW across three projects is currently eligible for AR8. Only consented floating projects are permitted to bid for a CfD; however, with more than 14GW of additional floating capacity currently in the planning system, the total eligible volume may increase further ahead of the AR8 opening.

Project Name	Capacity (MW)
West of Orkney	2,000
Mona	1,500
Outer Dowsing	1,500
Norfolk Boreas	1,380
Berwick Bank – Phase A	1,360
Berwick Bank – Phase C	1,360
Rampion 2	1,200
Five Estuaries	1,100
Caledonia North	1,000
East Anglia One North	900
North Falls	900
Caledonia South	650
Dudgeon Extension	540
Seagreen 1A	500
Morecambe	480
Sheringham Shoal Extension	442
White Cross (F)	100
Salamander (F)	100
TwinHub (F)	32
Forthwind	20
Total	17,064

Table 3: AR8 eligible projects. (F) = Floating. Projects in bold are yet to receive development consent 

Next steps

The AR8 application window will run from Monday 20th July – Friday 7th August, followed by qualification assessment and the publication of the Contract Budget Notice, expected in November. The budget will be published after qualifying bids have been assessed, with DESNZ using bid stack information to inform budget setting. Successful projects are expected to be notified between late November 2026 and February 2027, depending on the timeline scenario, with CfD contracts subsequently issued and signed.