UK government pauses 2026 renewable auction to review subsidies
The UK government announced a pause to the 2026 Contracts for Difference auction for wind and solar projects, saying the subsidy scheme will be reviewed to address grid constraints and rising consumer costs. The move follows a series of earlier policy steps. Chancellor John Healey had earlier warned that new offshore wind subsidies would only be approved if they could be integrated into the grid without increasing electricity prices.
The Treasury later outlined a plan to levy a windfall tax of at least 55% on profits from more than 3,000 renewable projects. Healey also said future funding would be tied to projects’ ability to lower bills and connect easily to the National Grid. Most recently, the Treasury announced cuts to financial support for offshore wind initiatives championed by Labour, raising questions about the feasibility of the 2030 clean-energy target.
