Diversifying Revenue: Why Developers Can’t Rely on CfDs Alone Post-AR7

Synopsis

AR7 delivered record capacity but exposed a critical challenge for renewable developers: government-backed CfD auctions alone cannot meet the pace and scale required for net zero delivery. With strike prices rising (offshore wind at £90.91/MWh, floating at £216.46/MWh), growing competition for limited CfD budgets, and persistent auction delays, developers must diversify revenue strategies. This session explores how AR7’s outcomes are driving increased reliance on Corporate Power Purchase Agreements (CPPAs) and hybrid revenue models, and what this means for positioning projects in AR8 and beyond.

• Rising strike prices, constrained budgets, and growing competition mean CfD support alone cannot sustain the renewable pipeline needed for UK net zero targets
• How CPPAs provide developers with additional revenue certainty, faster routes to market, and reduced dependency on auction outcomes and delays
• Combining CfD bids with corporate offtake agreements, optimizing project bankability, and adapting to evolving market dynamics and buyer demand