OnPath powers ahead with CfD win

A renewable energy developer is moving forward with plans for a new onshore wind farm in Scotland after securing Government backing in the latest funding round.

Sunderland-headquartered OnPath Energy has been awarded a Contract for Difference (CfD) in Allocation Round Seven for its Lethans Extension Wind Farm in East Ayrshire.

The ten-turbine scheme secured a strike price of £72.24 per MWh and follows planning approval being granted in 2024.

Construction is targeted to begin in late 2027.

The extension sits alongside the approved 22-turbine Lethans Wind Farm, which also secured a CfD in the previous allocation round.

Together, the two projects are expected to generate enough renewable electricity to power around 190,000 homes annually when operational in 2029.

Richard Dunkley, chief executive at OnPath Energy, which is owned by Brookfield Asset Management, said: “The contracts for difference scheme has been a key enabler for the success of onshore wind industry in Great Britain and we are pleased that Lethan’s Extensions has successfully been awarded a contract in the latest allocation round.

“The CfD ensures that investors have the confidence needed to invest in new renewable energy generation whilst offering consumer protection against volatile electricity prices and will be a key tool Government can use to achieve its clean power ambitions. 

“The strike price, which is five pounds per MWh below average wholesale electricity prices in 2025, shows that onshore wind is one of the cheapest forms of renewable energy generation available, and alongside offshore wind will be the backbone of the UK’s future net-zero energy system.

“Our AR7 auction success is a key milestone for the business, and we’ll now be moving forward to deliver on the Lethans and Lethans Extension Wind Farms. 

“We will expect to bring forward a range of new proposals for onshore wind farms across Great Britain that will build on our existing plans to invest around one billion pounds in total in clean energy projects by 2030.”

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