Energy Park in Caerphilly Successful in UK Allocation Round 7

Our energy park in Caerphilly, Twyn Hywel Energy Park, has been awarded a 20‑year Contract for Difference (CfD) at a strike price of £72.24 per megawatt hour.  Today (10 February 2026), the UK Government announced the results of the Contract for Difference (CfD) Allocation Round 7 – with Twyn Hywel Energy Park being the largest onshore wind development in Wales to secure a contract from the annual auction. 

The allocation rounds occur annually and is a government mechanism to support clean energy projects.  Twyn Hywel Energy Park is Bute Energy’s first energy park to enter construction and is due to start generating clean energy in late 2027. The project is a cornerstone in our wider commitment to invest £3bn in onshore wind, unlocking more than 2.2GW of renewable energy across Wales over the next decade.

Where is Twyn Hywel Energy Park?

Given the green light by Welsh Ministers in November 2024, Twyn Hywel Energy Park sits on the border of Caerphilly and Rhondda Cynon Taf in South East Wales. The park consists of 14 turbines generating 92.4MW, enough to power around 81,000 homes.

Once the park is built, communities will be able to bid for a local Community Benefit Fund of up to £703,500 ever​y​ year, helping to support local organisations​ and​​ ​charities, and​ to​ tackle local priorities, including supporting community-owned energy projects. The fund has been shaped in partnership with local communities, with a local grants panel to be established in the coming year. 

What does this mean for people in Caerphilly?

The UK’s Contracts for Difference (CfD) scheme is the government’s main way of supporting new low‑carbon electricity generation. Each year, renewable energy projects compete in a national auction – called an Allocation Round – for long‑term contracts that guarantee a stable price for the electricity they produce. This reduces financial risk, encourages investment, and accelerates the shift to home‑grown clean power.

For people in Caerphilly and the surrounding areas near the Twyn Hywel Energy Park, this means that we have even more certainty, confidence and security in the long-term investment for the energy park – giving us the ‘green light’ to push forward with our support for the community.

What happens next with Twyn Hywel Energy Park?

We first consulted on our proposals to generate clean, green energy at Twyn Hywel Energy Park in 2021 and early 2022. Feedback received from local communities, stakeholders and specialist consultees helped evolve the proposals ahead of Statutory Consultation that ran from November 2022 to January 2023.  Since the energy park received planning approval from Welsh Government in November 2024, we have commissioned ground investigation works are being carried out on site by Terra Firma Wales and we have been conducting a tender process to procure a contractors to supply our turbine blades and the electrical and civil engineering works on site – we hope to announce which suppliers have won those tenders very soon.

We have also formed a Community Liaison Group to help continue a two-way conversation between ourselves and local residents, businesses and organisations about matters relating to the energy park.

Catryn Newton, Director of Community Investment and Communications at Bute Energy said, 

“Today’s announcement is about more than Wales’ clean energy mission. Today’s announcement takes us one step closer to delivering life​–​changing investment in people, places​ ​ and businesses in Caerphilly and across south Wales. 

“We have spent the last 6 years working with local people, community organisations and businesses. Thanks to their support, we know that our investment will count. New jobs and skills, new opportunities for local business, and long-term funding for local communities to achieve their priorities. 

“With the right government support, our energy security mission could be a real step change for Wales and our economy, creating real opportunities for people, places​ ​and business​es​ across the country.”