How CfDs work
CfDs provide generators with a guaranteed 'strike price' for their electricity. When wholesale prices are below the strike price, generators receive a top-up payment. When prices are above, they pay back the difference.
Allocation Round 7 (AR7)
Key eligibility requirements
- Planning consent (or 12+ months since reaching relevant planning stage for offshore wind)
- Grid connection agreement
- Evidence of project deliverability
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Review Allocation Framework
Review AR7 Allocation Framework and eligibility criteria
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Ensure milestones on track
Ensure planning and grid connection milestones are on track
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Register on CfD portal
Check the current allocation-round timetable and register on the CfD portal before its application window
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Review AR7 results
AR7 closed in August 2025; results published in January and February 2026 awarded a record 14.7 GW across 201 projects
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Sign CfD contract
If successful, sign CfD contract with Low Carbon Contracts Company
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Meet commissioning date
Meet Target Commissioning Date to receive payments