Labour pauses 2027 renewables auction for value-for-money review

Labour has paused the planned 2027 auction round for contracts that support new wind and solar projects, pending a review of whether the scheme delivers value for consumers. The move reflects growing concern about energy costs, while raising questions about the certainty of future investment in clean power.

Under the contracts for difference system, generators receive a top-up from consumer bills when market prices fall below an agreed rate, and repay the difference when prices rise above it. The latest auction awarded contracts to more than 200 renewable projects, including a record 4.9 gigawatts of solar; agreed prices were £65.23 per megawatt hour for onshore solar and £72.24 for onshore wind. An investors’ association warned that uncertainty could put investment at risk, while ministers have also cited the cost of paying wind farms to stop producing when grid capacity is insufficient.