DAVY VIEW

Greencoat UK Wind’s (UKW) update this morning on the UK government’s Renewables Obligation (RO) consultation was well anticipated by the market, with the estimated net asset value (NAV) impact broadly in line with expectations. In our view, the consultation and recent share price moves across the sector highlight the importance of stable and predictable government policy, which remains a key driver of investor confidence in listed renewables. We believe it will be important for policymakers to recognise this dynamic as part of the consultation process to ensure continued capital investment in the energy transition.