Renewables Infrastructure, Octopus Renewables assess UK policy impacts

Wed, 22nd Apr 2026 11:30

(Alliance News) - Renewables Infrastructure Group Ltd and Octopus Renewables Infrastructure Trust PLC on Wednesday noted the expected impacts of recent UK energy policy plans.

Guernsey-based renewable energy investor, Renewables Infrastructure, noted the potential extension of contracts for difference to operational renewable assets, with the policy aimed at reducing the volatility of electricity prices for consumers.

These contracts, said the investor, are "long-term, fixed-price, inflation-linked, government-backed revenue contracts".

Renewables Infrastructure said the extension to operational assets would be expected to improve revenue visibility for generators.

The company said this extension is a policy on which its managers have been engaging with the government, and aligns with its goal of securing a high-proportion of fixed-price revenues.

It added that its managers currently anticipate Renewables Infrastructure's operational projects to take part in the proposed wholesale CfD allocation process next year.

The UK government also set out further measures, noted Renewables Infrastructure, including an increase in the electricity generator levy tax rate to 55% from 45% from July 1.

Renewables Infrastructure said this is not expected to impact its first-quarter net asset value, as it noted the power price forecast utilised in its portfolio valuation at the end of last year was under the threshold level.

The company further noted the government's Reformed National Pricing Delivery Plan, stating that it aligns with industry expectations.

Renewables Infrastructure said its managers will continue to engage with the government, "including through the relevant consultations".

Octopus Renewables Infrastructure on Wednesday also drew attention to the measures, stating that based on a preliminary assessment, it does not anticipate a change in the EGL rate to have a material impact on its valuation.

The London-based investment company focused on European and Australian renewable energy assets also stated that the proposed fixed-price mechanism "may provide an opportunity to secure additional long-term fixed revenues".

Octopus Renewables further noted the government's announcement from Thursday last week regarding its plans to legislate for the removal of carbon price support from April 2028.

Regarding this, the trust said the CPS removal is expected to lower the forecast electricity price captured by its UK assets by around GBP2 to GBP3 per megawatt hour from April 2028, adding that the impact will reduce over time.

Octopus Renewables said the corresponding anticipated impact on its net asset value is under 0.5 pence per share. It noted that this reflects its "high level of fixed revenues and geographically diversified portfolio."

Renewables Infrastructure on Friday flagged an expected reduction in its net asset value as a result of the UK carbon policy changes.

As a result of the policy change, it said it expects its net asset value per share to fall by approximately 0.5 pence.

Shares in Renewables Infrastructure were trading 1.2% higher at 67.36 pence on Wednesday morning in London. Octopus Renewables shares rose 3.3% to 59.60p.

By Christopher Ward, Alliance News reporter

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