Two Welsh projects succeed in the highly competitive offshore wind auction, unlocking £2.6bn of investment and enough clean power for almost one million homes.

Wales has secured a major boost to its clean energy ambitions after two offshore wind projects linked to Wales were successful in the UK Government’s latest offshore wind auction. This marks a significant step change for the nation’s role in the UK’s renewable energy transition.

In one of the most competitive clean energy auctions to date, Wales secured two of the eight successful offshore wind projects announced today - and two out of the three Welsh projects eligible to bid - demonstrating a high success rate and growing confidence in Wales as a destination for offshore wind investment.

The successful projects include RWE’s Awel y Môr fixed-bottom offshore wind farm off the North Wales coast, and Blue Gem Wind’s trailblazing Erebus floating offshore wind test and demonstration project off the Pembrokeshire coast. Together, the projects represent enough clean electricity to power almost one million homes and around £2.6 billion of investment opportunity into Wales’ coastal and industrial communities.

Both projects are expected to be delivered by 2030–31, helping to provide secure, home-grown electricity at a time when demand is rising rapidly and energy affordability is a growing concern for households and businesses.

These projects will also deliver long-term value for billpayers. Offshore wind remains one of the cheapest forms of new electricity generation in the UK, helping to reduce Wales’ reliance on imported fossil fuels and protect consumers from sudden price shocks.

The results mark a turning point for Wales. Over the past decade, Wales has captured less than 2% of the capacity awarded through UK clean energy auctions, while England and Scotland have secured the vast majority. Today’s outcome signals a clear shift - showing that Wales is now competing successfully at scale and positioning itself as a serious player in the UK’s clean energy economy.

This is particularly significant for communities that have suffered from the collapse of the coal industry and experienced decades of industrial decline, including coastal and industrial areas such as Port Talbot. Offshore wind offers a major opportunity for skilled employment, supply-chain growth and private sector investment.

Jessica Hooper, Director of RenewableUK Cymru, said:
“Today’s auction results show what is possible when Wales competes at scale and sends a clear signal that it is open for clean energy investment.

“With electricity demand set to rise rapidly as transport, heating and industry electrify, offshore wind will be central to delivering secure, affordable, home-grown power. Wales’s success in this auction shows that we can play a leading role - but maintaining momentum will be critical if we are to anchor jobs, investment and long-term economic value here in Wales.”

The success of the Erebus floating offshore wind project is particularly important for South and West Wales. As a test and demonstration project, Erebus will be a critical first step in unlocking the huge floating offshore wind opportunity in the Celtic Sea, helping to demonstrate the technology, reduce costs and build confidence ahead of much larger projects planned for the region by 2035.

These early floating projects act as a stepping stone for the Welsh economy - giving ports, supply chains and workers the chance to develop the skills and experience needed to capture the much larger investment and job opportunities that floating offshore wind can bring.

Hugh Kelly, CEO of Simply Blue Group, said:
“We welcome the announcement of the AR7 results, particularly the awarding of a Contract for Difference for our Erebus project. This is a milestone for the project and for floating offshore wind in the Celtic Sea.”

The success of Awel y Môr further strengthens North Wales’s position as a major offshore wind hub. RWE is already a significant investor and employer in Wales, and the project is expected to support skilled jobs, apprenticeships and local supply-chain opportunities across the region.

Philippa Powell, Project Lead for Awel y Môr, said:
“With this successful Contracts for Difference award, one of Wales’s largest renewable energy investments can now progress toward the next phase of development with confidence.

“Our next steps will include further onshore and offshore site investigations ahead of construction, while continuing to work closely with local communities, suppliers and stakeholders.”

Together, these projects underline the scale of opportunity offshore wind presents for Wales - not just in delivering clean power, but in driving economic renewal, energy security and long-term prosperity for coastal and industrial communities.

KeyFacts Energy Industry Directory: Simply Blue