European Energy Wins 116MW UK Solar CFDs

Why It Matters

The deal provides stable cash flows for European Energy, accelerating UK solar deployment and supporting the country's net‑zero targets. It also signals strong investor confidence in the UK’s CfD framework as a catalyst for low‑cost renewable growth.

Key Takeaways

• European Energy awarded 116 MW of UK solar CFDs.
• Strike price set at £65.23/MWh, index‑linked.
• Round 7a delivered 14.7 GW clean power across technologies.
• Awards boost revenue certainty for three farm projects.
• Solar capacity awarded highest since scheme inception.

Pulse Analysis

The UK’s Contracts for Difference (CfD) auction, now in its seventh round, continues to shape the nation’s renewable landscape. Allocation Round 7a attracted over 4.9 GW of solar capacity, the highest ever under the scheme, underscoring the policy’s effectiveness in de‑risking projects. European Energy’s win of three farms totalling 116 MW illustrates how developers are leveraging the predictable revenue streams that CfDs provide to secure financing and move swiftly from planning to construction, reinforcing the UK’s ambition to decarbonise its power system.

A strike price of £65.23 /MWh, indexed for two decades, reflects the falling cost curve of solar generation and the competitive nature of the auction. Compared with earlier rounds, this price is markedly lower, indicating that solar is becoming one of the cheapest sources of new electricity in the UK. The long‑term price certainty reduces exposure to market volatility, making it easier for lenders and investors to commit capital. Consequently, developers can lock in lower financing costs, which translates into cheaper electricity for consumers and a faster rollout of renewable capacity.

European Energy’s portfolio in the UK now includes four solar farms under construction and a broader pipeline of wind, solar and Power‑to‑X projects. The firm’s continued focus on the British market highlights the strategic importance of the UK’s stable policy environment and its sizable demand for clean energy. As the country pursues its 2030 net‑zero goals, developers like European Energy will play a pivotal role in delivering the scale required, while the CfD mechanism remains a cornerstone for attracting private investment and ensuring long‑term price stability.

European Energy wins 116MW UK solar CFDs

Three projects secure £65.23/MWh strike price · 11 February 2026

European Energy has secured Contracts for Difference for three UK solar projects totalling 116 MWp in the government’s Allocation Round 7a.

The awards cover the Church Farm, Manor Farm and Old Hall Farm schemes in Nottinghamshire, Oxfordshire and Leicestershire at a strike price of £65.23 /MWh, which is index‑linked for 20 years, the company said.

In total 4.9 GW of solar capacity secured contracts under the round, representing the highest number of projects and the largest capacity awarded to solar in the UK since the scheme began, European Energy added.

The awards provide long‑term revenue certainty for the three projects and strengthen the company’s commitment to developing and constructing renewable energy assets in the UK market, according to the developer.

European Energy has been active in the UK for more than a decade and currently has four solar farms under construction supported by corporate PPAs, with further wind, solar and Power‑to‑X projects in its pipeline.

“Today’s auction success marks an important milestone for our projects and UK team,” said Adam Spearey, UK Development Director at European Energy.

“The revenue certainty provided by CFDs will help us accelerate the delivery of these new, low‑cost renewable energy generation assets and all their associated long‑term economic and social benefits,” Spearey added.

“The UK remains a key market for European Energy,” said Thorvald Spanggaard, EVP and Head of Project Development at European Energy.

“Securing contracts for three projects in a highly competitive auction underlines the strength of our development and M&A activities in the country,” Spanggaard stated.

According to the UK Department for Energy Security and Net Zero, the AR7 auction delivered 14.7 GW of clean power across technologies.