Wedoany.com Report on Feb 11th, German energy company RWE has successfully won bids in the UK's seventh round of renewable energy auctions (AR7), securing long-term Contracts for Difference (CfDs) for a total of 290 megawatts of solar and onshore wind projects. This achievement includes five solar projects with a capacity of 215 MW and three onshore wind projects with a capacity of 76 MW.

The contract price for the solar projects is £65.23 per megawatt-hour, approximately 7.49 euro cents per kilowatt-hour; the price for the onshore wind projects is £72.24 per MWh, approximately 8.29 euro cents per kWh, with prices benchmarked to 2024. These contracts have a term of 20 years and operate under a fixed strike price mechanism: when the market price falls below the strike price, RWE will receive a government subsidy to cover the difference; if the market price exceeds the strike price, RWE must return the excess revenue. This arrangement enhances revenue predictability and effectively manages price volatility risk.

In the UK, CfD strike prices are linked to the Consumer Price Index (CPI), meaning the minimum compensation amount is automatically adjusted annually for inflation. The newly secured 290 MW of wind and solar projects are expected to provide electricity for approximately 240,000 UK households annually, further solidifying RWE's position in the UK's renewable energy market.

RWE already operates 730 MW of onshore wind farms and 185 MW of solar power stations in the UK, with over 670 MW of wind and solar projects under construction. Katja Wünschel, CEO of RWE Renewables Europe & Australia, stated: "We are very pleased to have secured long-term power purchase contracts for eight solar and onshore wind projects in the seventh allocation round. This achievement marks an important milestone for RWE in continuing to advance our UK solar and onshore wind development pipeline and highlights the strategic importance of the UK market for our business."