Awel y Môr, one of Wales’ largest investments in renewable energy, is set to move forward after achieving a successful contract for difference (CfD) with UK Government.

The project, which achieved consent to build up to 50 turbines, 10.5km off the coast of north Wales in 2023, will now move towards Final Investment Decision (FID) and to the start of construction, which is currently planned to take place in 2027.

Awel y M ô r is the first fixed offshore project in Wales to win a CfD in a decade. Once complete, it is predicted to generate the equivalent of 19 per cent of Wales’ current usage, or equivalent to the needs of over 50 per cent of the households in Wales.

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

“Having spent several years developing and refining our plan and building relationships with stakeholders and suppliers, our next steps will be to undertake additional onshore and offshore site investigations during 2026, ahead of planned construction in 2027.

“We will, of course, ensure that our local communities, suppliers and other relevant stakeholders remain fully informed as we progress.”
The strike price of £91.20 means the project is guaranteed this price per megawatt-hour for the next two decades, with any surplus when the market price rises above this benefitting the UK Government’s Low Carbon Contracts Company.

This compares to a price of £147 per megawatt hour, for any new gas generation capacity.

RWE is one of the world’s leading companies in offshore wind. The company currently operates 19 offshore wind farms in five countries including three in Wales, with a total installed capacity of 6.2 GW – RWE’s share in these projects amounts to 3.3 GW.

RWE’s Norfolk Vanguard East and Norfolk Vanguard West projects, as well as its two Dogger Bank South projects, all of which are located in the British North Sea, also achieved CfD success.

Markus Krebber, CEO of RWE AG:
“We are delighted to have been successful in securing long-term offtake contracts for five projects in AR7.
At Awel y Môr, we are proud to collaborate with Stadtwerke München and Siemens, who bring their expertise and commitment to our shared success.

“With the successful outcome of AR7, RWE has reached key milestones in executing its UK offshore wind development pipeline.”