Allocation Round 8 opening in July 2026

Energy Secretary, Ed Miliband, has announced that the next Contracts for Difference (CfD) auction, Allocation Round 8 (AR8), will now open in July 2026. This earlier than anticipated auction forms part of a package of measures to accelerate the UK’s energy security in response to recent geopolitical instability in the Middle East.

An earlier CfD – what’s the impact?

Bringing forward AR8 will accelerate investment and deployment of clean energy projects by advancing timelines. With mature projects sitting tight before starting construction in anticipation of a Contract for Difference, an earlier allocation round allows these projects – particularly those that missed out on AR7 – to accelerate their timelines.

For earlier stage development projects, or those working towards an autumn timeline, this may create pressure to ramp up development activities such as securing construction contracts, procurement, a secured grid connection and planning before July.

There may be tensions in supply chains and construction capacity as projects seek to move final investment decisions forward along with the construction timeline. But with supply chains targeting a late in 2026 AR8 auction, it raises the question whether there will be flexibility to deliver ahead of when projects were originally planned.

The earlier timetable may lead to natural attrition with some projects unable to reach eligibility or bid competitively by July. Portfolio developers may also need to prioritise projects that have the strongest prospects of success.

Connection Reform delays could also impact eligibility. Given participation requires a secured grid connection, ongoing industry-reported delays on connection offers and dates could affect some projects’ ability to participate. There are no AR8-specific statements on this yet.

Getting ready for July

The eligibility requirements for AR8 have not yet been published. However, based on AR7, applicants are likely to need to demonstrate the following requirements.

• Grid Connection Agreements: evidence that at least 75% of initial installed capacity is contracted.
• Planning consents: as applicable to the technology, projects will need to demonstrate secured planning consents, with offshore wind able to apply whilst certain consents are pending.
• Supply Chain Plans: required for onshore technologies of 300MW or more, updated SCP guidance has already been published in anticipation of AR8 (see our separate article on this).
• Incorporation: applicants must be incorporated in the UK.
• No conflicting subsidy: applicants must confirm they are not receiving other forms of government support that preclude CfD participation.
• Private network generators: additional requirements apply where relevant.
• Technology specific criteria: including floating offshore wind and remote island wind.
• Offshore Leasing: offshore wind projects must demonstrate seabed rights through a Crown Estate lease or agreement for lease.
• Clean Industry Bonus – applicants seeking the CIB uplift must obtain a CIB Statement and – new for AR8 – sign up to the interim Fair Work Charter with suppliers in Criterion 1 bids also required to sign up.
• Repowering – AR7 required evidence of decommissioning and reinstatement of capacity for eligible repowering units with AR8 rules awaited. We saw no successful repowering projects in AR7, but will they feature in AR8?

Securing commercial contracts early will also help developers build a robust cost base and financial model, enabling more competitive bidding.

Supply Chain Plan and Clean Industry Bonus: Timelines

The Clean Industry Bonus window for offshore wind projects is set to open on 13 May 2026 and close on 21 May 2026. This date may be pushed back and will be confirmed by DESNZ.

The Supply Chain Plan application window for onshore projects of 300MW or more will open on 1 April 2026 and close on 7 April 2026. Applicants need to indicate to DESNZ their intention to submit a Supply Chain Plan for assessment in the week before the window opens.

Is that all?

Not entirely. Two live strands of consultation remain in progress:

• Proposed refinements to the CfD scheme for AR8 and beyond, published in December 2025 and with full policy response awaited, although some early indications have been included in the consultation on contractual changes for the Clean Industry Bonus below.
• Contract changes for the Clean Industry Bonus, with the Government policy on reforms to the Clean Industry Bonus announced in February, drafts of the amended allocation framework and CfD contracts are now under consultation. This consultation closes on 1 April 2026.

How we can help

From construction contracts, permitting and planning, grid connection and land rights, to legal aspects of the application itself, our specialist Energy & Infrastructure team can support you on the road to obtaining a Contract for Difference in AR8.