Greencoat UK Wind PLC (LSE:UKW), via its manager Schroders Greencoat, has submitted a formal response to the UK Government’s consultation on altering inflation indexation within the Renewables Obligation scheme. The company contends that the proposed adjustments would fail to lower consumer energy bills and could instead raise overall costs by increasing capital requirements for renewable projects. Greencoat UK Wind highlights the importance of policy stability to maintain investor confidence and recommends exploring alternatives—such as voluntary Contracts for Difference—that could help reduce costs without jeopardising long-term investment in the sector.
The company’s investment outlook is currently constrained by steep revenue declines and ongoing profitability challenges. While a solid balance sheet and positive cash generation provide a degree of support, and recent share buybacks reflect proactive capital management, technical indicators remain bearish. A negative P/E ratio further weighs on valuation appeal.
More about Greencoat UK Wind
Greencoat UK Wind PLC is a specialist renewable energy investor focused on wind power assets across the UK. Managed by Schroders Greencoat, the company acquires and operates wind farms to deliver stable, long-term returns while contributing to the country’s renewable energy ambitions.
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