What AR7a means for corporate renewable procurement – and why 2026 could redefine CPPAs

The UK Government’s second Contract Budget Notice for Allocation Round 7a (AR7a) has arrived.  

While this is a technical update on Contracts for Difference (CfD) budgets, the implications of the Contract Budget Notice run far deeper, especially for corporate buyers targeting RE100, high-quality additionality and credible Scope 2 decarbonisation strategies. 

AR7a signals another year of strong government support for low-cost renewables, with £295m allocated to Pot 1 technologies and a further £15m for Pot 2. Onshore wind and solar remain central, with tight constraints designed to push deployment at pace.  

For developers, this is welcome certainty. However, for corporate energy buyers, AR7a reshapes the entire field of Corporate Power Purchase Agreement (CPPA) negotiation in 2026. 

What does this mean in practice?

By all accounts, more CfD-backed projects is good news for the grid.  

However, the story is more nuanced for corporates trying to demonstrate that their procurement caused new renewables to be built. AR7a effectively reduces the stock of ‘additionality-grade’ projects, where a corporate buyer can credibly say: “This happened because of us.” 

When a project wins a CfD, its economics become largely independent of corporate demand, which means fewer opportunities for buyers to claim that their PPA brought a new project forward. 

Why developers might favour CfDs in 2026

With Administrative Strike Prices at competitive levels (Solar £75/MWh, Onshore Wind £92/MWh), CfDs offer revenue certainty, lower financing risk and faster routes to final investment decision. In a volatile market, most developers will prioritise CfD rounds over corporate offtakes. 

This could create a very different CPPA market in 2026: 

• CPPAs will need to compete with CfD risk profiles.
• Corporate buyers may need more flexible structures, faster approvals, or shared risk curves. 
• Developers may become more selective about which corporate negotiations they entertain at all. 

This marks a more competitive CPPA environment – especially for buyers who need additionality. 

What 2026 might look like for CPPAs

1. Additionality will become scarcer – and more valuable. 

With more projects entering the CfD pipeline, the pool of “non-CfD, corporate-enabled”-projects will shrink. Meanwhile, the demand for additionality will not. Corporates will need to move earlier to secure positions in projects that still allow strong claims. 

2. Early engagement will be the differentiator. 

In 2026, the corporates who win will be those already partnering at pre-CfD or even pre-planning stages. 

3. “Price-led” procurement will shift to “impact-led” procurement. 

The cheapest deals won’t be the most valuable ones. Instead, corporates may start attaching value to the carbon impact of their procurement – not just the electricity price. 

4. Direct-to-report routes will tighten. 

As more projects choose CfDs, the flexible volumes that enable direct-to-report arrangements may decline. This could push corporates into: 

• more structured CPPAs, 
• mixed procurement strategies, 
• or multi-project portfolios to maintain RE100 compliance. 

Corporates can still shape the next wave of renewables

Despite the constraints, the role of corporate demand is far from diminished. In fact, AR7a may push corporates into a more strategic, impactful role. 

When CfDs capture the mainstream, corporates become the catalyst for the margins – the innovative, early, additionality-led projects that can accelerate decarbonisation beyond government support mechanisms. 

In 2026, corporates have a choice: React to the shift in the market or help shape it.