Repowering in AR7: A turning point for onshore wind in the UK
At a glance
The UK Government’s decision to include repowered onshore wind projects in Contracts for Difference Allocation Round 7 (CfD AR7) marks a significant policy shift. For the first time, repowering is formally recognised within the CfD framework, with eligible projects able to access a 20-year contract term when the round opens in August 2025.
Most schemes will likely target AR8 and AR9 because of lead times, but AR7 lays an important foundation. Highlights include the following:
- Eligibility for repowered projects exceeding 5 MW capacity
- No requirement to match or exceed the legacy site’s capacity
- A temporary restriction on rebidding surrendered CfD capacity to encourage new additions
With grid access and community support already in place at many older sites, repowering offers a practical path to scaling renewables whilst limiting land and planning impacts.
Why repowering matters
Efficiency and strategic value
Repowering is not just a sustainability exercise; it is a strategic redevelopment. Advantages include reduced permitting and land acquisition costs, access to improved wind regimes with modern turbine models, lower levelised cost of energy (LCoE), and improved project financing potential. However, these benefits can be diminished without early assessments of grid constraints, planning timelines, CfD readiness, and legal risks.
Planning remains the primary constraint
Despite occupying previously developed land, most repowering projects are treated as new developments. This triggers the following:
- Full planning applications
- New environmental impact assessments (EIA)
- Renewed consultations with local communities and stakeholders
- Reassessment of technical impacts (e.g., noise, visual, ecological)
Taller turbines and different layouts attract fresh scrutiny. The Onshore Wind Taskforce has recommended updating legacy noise standards (e.g. ETSU-R-97), which may simplify approvals. Further reforms could improve feasibility across a broader pipeline of sites.
Grid capacity and connection hurdles
However, recent reforms by Ofgem, such as ASTI and queue management updates, recognise the value of shovel-ready sites and may favour repowering within allocation frameworks. Early engagement will be essential.
Land and legal considerations
Many first-generation wind projects were developed under conditions that did not anticipate repowering. Issues can include leases without repowering clauses, fragmented land ownership, and legacy turbine restrictions. These should be reviewed early in the development process. Developers should also account for the commercial implications of dismantling or repurposing old infrastructure.
Performance modelling and wake impacts
Updated energy-yield modelling is crucial to justify reinvestment. This involves incorporating new turbine specs and site data, long-term production forecasting, and assessing potential wake losses or interference with neighbouring wind farms. In areas with dense development, evaluating wake effects and mitigating associated risks helps avoid disputes and optimise generation potential.
Key takeaways
The inclusion of repowering in AR7 is a positive step not only for eligible projects now but for what it signals about future policy direction. It reflects a growing recognition of repowering as a cost-effective, land-smart solution for scaling clean energy.
To prepare for AR8 and AR9, developers should do the following:
- Identify sites approaching 25 years of operation by 2030
- Align planning strategies with evolving EIA and noise standards
- Assess grid capacity and engage with DNOs/NESO
- Develop commercial strategies for co-location or hybridisation
Repowering is best approached as a site redevelopment. With aligned action across CfD design (DESNZ), network planning (Ofgem and NESO), and planning-reform efforts (Onshore Wind Taskforce), the opportunity is clear. Now is the time to identify, prepare, and bring legacy wind farms into the next generation of the UK’s energy transition.