Article

The UK government has announced a record 8.4 GW of offshore wind capacity awarded in Contracts for Difference Allocation Round 7 (AR7), primarily to fixed-bottom projects, following a budget enhancement. However, the results reveal significant project concentration, with one developer owning stakes in five of the six awarded projects, prompting adaptations in bidding strategies for the upcoming Allocation Round 8 (AR8) amid ongoing cost pressures and supply chain uncertainties. The evolving landscape underscores the need for advanced bid simulation tools to improve risk assessment and financial modeling in a competitive auction environment.