The latest Contracts for Difference auction, which has recorded a haul of 9600MW, is a sign investor confidence in the UK renewables market is returning, said RenewableUK.
According to the industry body the 131 projects which have won contracts in Allocation Round 6 will attract over £14bn of new private investment into the economy.
The first projects will start generating electricity in 2026.
The results show investor confidence has returned, after the failure of last year’s AR5, which attracted no bids from offshore wind projects, stated RenewableUK.
Its chief executive Dan McGrail said: “The success of today’s auction sends a clear signal that the UK is back in the global race for clean energy investment.
“This wide range of projects, across technologies, are vital steps in building a clean, affordable energy system and reducing our dependence on expensive fossil fuels.”
James Alexander, CEO at UKSIF, said the success of AR6 in securing record private investment shows the UK “has turned a corner”, and momentum is building behind the green transition again.
He added: “The British public, especially energy bill payers, will reap the benefits of government, companies and investors working together to drive private finance into one of the UK’s biggest future growth prospects: our clean power industries.”
Energy UK’s chief executive Emma Pinchbeck added: “Today’s record-breaking result shows that the Contracts for Difference programme is once again fit for purpose.
“Building on AR6’s success will mean delivering next year’s auction on time, and maintaining an auction design that ensures both investor confidence and value for customers.”
Today, nine offshore wind projects totalling 4.9GW secured contracts at a cost of £54-59 per megawatt hour (MWh).
The price is in line with other recent auctions globally and “reflects the dual impacts of inflation and financing costs due to high interest rates”, said RenewableUK.
Meanwhile, 22 onshore wind projects (990MW) were successful this year at £50.90/MWh, confirming it is one of the UK’s cheapest sources of new power, along with 3.2GW of solar capacity at a similar price.
Power generated by the successful projects will save nearly £3bn a year compared to the alternative cost of gas by 2030, reinforcing the findings of RenewableUK’s recent report by Aurora Energy Research, which shows that an electricity system which is dominated by offshore wind will be cheaper for billpayers than alternatives, including burning more gas or importing power from abroad via interconnectors.
McGrail added: “The government has set a world-leading clean power mission for 2030 and to meet that will need a big step-up from today.
“The industry stands ready to work with Government to make sure that we’re increasing the amount of new renewables coming through each year to the levels needed to meet the clean power mission.”
Commenting on the results, co-chair of the Offshore Wind Industry Council (OWIC), Richard Sandford said: “These results are a vote of confidence in the UK’s offshore wind market, and it’s crucial that we focus next on maximising the amount of offshore wind capacity we secure in future annual auctions.
“Offshore wind will create tens of thousands of jobs, help enhance Britain’s energy security and lower costs for consumers.
“To achieve this, we will have to scale up the UK’s offshore wind supply chain faster to support projects here and abroad, boosting the UK’s economy by a further £25bn between now and 2035.
“The sector’s Industrial Growth Plan demonstrates that we can triple our manufacturing capacity over the next ten years by focussing on competitive supply chain areas including designing and manufacturing blades, turbine towers, foundations and cables.
“We are collaborating with Government to turn this plan into action for its clean energy mission. AR6 has increased confidence in the sector which we aim to build on further in future auction rounds.”