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United Kingdom·Energy·Trade & Economy

UK shifts older wind and solar farms to fixed-price contracts to curb energy bill volatility

Tuesday, 21 April 2026, 00:02 · 1 min read

The UK government has announced plans to move older wind and solar farms — which together account for nearly a third of Great Britain's electricity supply — onto fixed-price contracts, in a bid to shield households and businesses from future gas market shocks. Under the voluntary scheme, legacy renewable generators currently earning subsidies on top of market rates will be offered so-called contracts for difference, similar to deals used by new low-carbon projects since 2017, or face steeper windfall taxes on their profits. The move is aimed at "delinking" electricity prices from volatile wholesale gas prices, which have recently surged from around £74 to over £100 per megawatt hour, and which disproportionately affect the UK given that gas-fired plants generate roughly 30% of its electricity and effectively set the market price for all generators.

Sources
The GuardianUK shifts older wind and solar farms to fixed-price deals to reduce price shocks ↗︎
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