Greencoat UK Wind (LSE:UKW) has outlined the potential impact of the UK Government’s plan to abolish Carbon Price Support (CPS) from April 2028, a mechanism that currently helps sustain electricity prices when fossil fuel generation sets the market rate.
While the company’s investment manager had already factored in a gradual decline in CPS influence as renewable capacity increases, the confirmed policy change brings forward this transition in the pricing environment.
Preliminary estimates indicate that the removal of CPS could reduce assumed power prices in Greencoat’s valuation models by around £4–5/MWh between 2028 and the early 2030s, and by £2–3/MWh thereafter. This adjustment is expected to lower net asset value by approximately 3–5 pence per share. The company said further detail will be provided in its upcoming first-quarter factsheet.
The outlook remains pressured by recent earnings volatility, including reported losses and zero free cash flow in 2025. Market indicators also suggest a weak trend, with the share price trading below longer-term averages and momentum signals negative. However, these factors are partly offset by a high dividend yield, moderate leverage, and continued positive operating cash flow.
More about Greencoat UK Wind
Greencoat UK Wind PLC is a London-listed investment company focused on owning and operating UK wind farms, both onshore and offshore. It offers investors exposure to renewable energy infrastructure with relatively stable, inflation-linked cash flows, playing a significant role in the UK’s transition toward cleaner electricity generation.
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