Two major Scottish offshore wind projects, representing a combined capacity of nearly 1.5GW, have been awarded Contracts for Difference (CfD) in the UK Government's latest renewables auction.
The results of Allocation Round 7 (AR7), announced today, 14 January 2026, mark a significant turning point for the Scottish energy sector and the wider UK supply chain.
The 1.4GW Phase B of Berwick Bank Wind Farm has become the first fixed-bottom offshore wind project in Scotland to secure a CfD since 2022. Additionally, the Pentland Floating Offshore Wind Farm secured a contract for 92.5MW, providing a crucial platform for testing and scaling floating wind technology in Scottish waters.
Key Highlights of the AR7 Awards:
- Berwick Bank (Phase B): Secured a 20-year contract at a strike price of £89.49/MWh. When all phases are complete, the site has the potential to deliver over 4GW, making it one of the largest offshore wind farms globally.
- Pentland Floating Wind: Awarded a contract at a strike price of £216.49/MWh. This project is a vital "test and demonstration" site for commercial-scale floating technology.
- Economic Impact: The two projects contribute to the 47,000 jobs and £15 billion in annual economic benefits already generated by the Scottish renewable sector.
Claire Mack, Chief Executive of Scottish Renewables, described the result as "hugely encouraging" but noted that more must be done to address structural barriers.
"Scotland has not been awarded a fixed offshore wind CfD since 2022, so it is hugely encouraging to see the success of SSE's Berwick Bank. However, achieving a lower-cost, secure, stable and geographically diversified energy system in the long term requires a fairer approach to connecting projects to the grid. We urge the UK Government to work with industry to urgently find solutions to the prohibitive grid charging regime to allow all Scottish projects to compete fairly in future rounds."
The CfD scheme works by providing developers with a guaranteed price for the electricity they generate, protecting them from market volatility while ensuring consumers benefit from the low cost of renewable energy compared to fossil fuels. Today's auction results are expected to unlock approximately £22 billion in private investment across the UK.
The success of these projects is a major step toward the UK's goal of Clean Power by 2030. SSE, the developer of Berwick Bank, has indicated that a final investment decision for Phase B is expected in 2027.
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