The Renewables Infrastructure Group (LSE:TRIG) flagged that UK policy announcements include the possible extension of Contracts for Difference to operational renewables, measures to accelerate electrification and an increase in the Electricity Generator Levy.
TRIG’s managers say Wholesale CfDs would help reduce price volatility for consumers and improve revenue certainty for generators. The change aligns with TRIG’s strategy: 75% of the group’s projected revenues over the next five years are fixed price per unit generated, and the managers expect TRIG’s operational projects to take part in the proposed WCfD allocation process in 2027.
The Government will raise the Electricity Generator Levy from 45% to 55% from 1 July, but TRIG’s power-price forecast used in the portfolio valuation as at 31 December 2025 is below the EGL threshold of £82.61/MWh in all future periods. TRIG therefore expects no NAV or dividend cover impact in the Q1 2026 update.
The Reformed National Pricing Delivery Plan seeks to protect existing agreements and prioritise legacy transmission arrangements, while greater support for electrification should lift demand for the group’s generation and battery pipeline.
"The Managers will continue to engage with Government, including through the relevant consultations." TRIG added.
