RWE Wins UK Renewable Energy Contracts in Allocation Round 7 | Solar & Wind

The United Kingdom has secured significant investment in renewable energy projects following the results of Allocation Round 7 (AR7), a government auction for ‘Pot 1’ technologies – onshore wind and solar photovoltaic (PV). RWE, a major European energy company, has emerged as a key beneficiary, securing contracts for five solar projects totaling 215 megawatts (MW) and three onshore wind projects with a combined capacity of 76 MW. The results, announced today, February 10, 2026, underscore the UK’s commitment to expanding its clean energy capacity and reducing reliance on fossil fuels.

The solar projects awarded to RWE will benefit from a strike price of £65.23 per megawatt hour (MWh), while the onshore wind projects secured contracts at £72.24/MWh. These strike prices, fixed in 2024 values, are indexed to inflation over the 20-year duration of the contracts, providing long-term revenue stability for the projects. Notably, the government highlighted that these prices are significantly lower than the estimated cost of building and operating new gas power stations, which it places at £147 per MWh, according to web search results.

This outcome arrives as the UK strives to meet ambitious clean power targets. The Contracts for Difference (CfD) scheme, the mechanism underpinning AR7, is designed to de-risk investment in renewable generation by offering developers guaranteed electricity prices. The success of AR7 is considered critical to achieving the government’s objectives of growth and clean power, as outlined in recent policy documents. Energy UK, a trade association, emphasized the importance of a successful AR7 in a briefing published in June 2025, noting that this round required procuring more capacity than any previous allocation round.

RWE’s success in AR7 builds on an existing substantial presence in the UK renewable energy market. The company currently operates over 30 onshore wind farms in the UK, boasting a total capacity of 730 MW. Following the commissioning of its first solar site, the Langford project in Devon, in June 2025, RWE now has four operational solar PV sites with a combined installed capacity of 185 MW. The company has nine additional PV projects, representing around 440 MW of capacity, currently under construction, alongside four onshore wind sites totaling approximately 230 MW.

The scale of RWE’s development pipeline suggests a significant commitment to the UK market. The company’s CEO for Renewables Europe & Australia, Katja Wünschel, expressed her satisfaction with the AR7 results, stating, “What a great success! We are delighted to have secured long-term offtake contracts for eight solar and onshore wind projects in Allocation Round 7. This achievement marks an important milestone for RWE as we continue to deliver our UK solar and onshore wind development pipeline and underscores the strategic importance of the UK market to our business.”

The broader AR7 auction, encompassing both ‘Pot 1’ technologies and offshore wind (results from which were announced previously), secured a record 14.7 gigawatts (GW) of new clean power capacity from 201 projects. This total capacity is sufficient to power the equivalent of 16 million homes, according to the government. The auction also saw record procurement of solar power, with 4.9 GW secured across 157 projects, and 1.3 GW of onshore wind from 28 projects. A smaller allocation of 20.9 MW was awarded to tidal stream power projects.

The financial implications of AR7 extend beyond the immediate contracts awarded. Officials project that the new power capacity will unlock approximately £5 billion in private sector investment and could support up to 10,000 jobs at peak construction. Specific projects highlighted include the Imerys Wind Farm in Cornwall, described as the largest onshore wind project successful in England in a decade, and the West Burton solar farm, noted as the largest solar farm ever to win a government renewables contract.

The success of AR7 is particularly noteworthy in the context of recent challenges facing the renewable energy sector, including supply chain disruptions and inflationary pressures. The competitive auction process, coupled with the long-term revenue certainty provided by CfD contracts, appears to have attracted significant investment despite these headwinds. The government’s decision to extend the length of CfD contracts and adjust auction parameters, as recommended by Energy UK, likely played a role in bolstering investor confidence.

Looking ahead, the UK faces the challenge of scaling up renewable energy deployment even further to meet its 2030 clean power target. The Clean Power Action Plan calls for a substantial increase in offshore wind capacity, as well as a doubling and tripling of onshore wind and solar capacity, respectively. Continued success in future allocation rounds, coupled with supportive policy measures, will be essential to achieving these ambitious goals. The results of AR7 provide a positive signal that the UK is on track to deliver a cleaner, more secure, and more affordable energy system.