The British government on Monday launched a review of the structure of the country’s electricity market with the aim of significantly improving energy security and significantly reducing electricity costs for long-term users. The major changes proposed by the government would help reduce soaring energy bills, which have hurt Britons amid the escalating cost of living crisis.
The Review of Electricity Market Arrangements (REMA) will attempt to find and understand different options to address current energy challenges. Some of the changes consulted as part of the review include the introduction of incentives for users to obtain cheaper energy from the grid in the event of high generation or low demand, capacity market reforms to stimulate the use of low-carbon technologies and the decoupling of cheaper renewable energies. expensive fossil fuels.
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Under the current system, wholesale electricity prices are mainly determined by gas prices. But, as cheaper renewable alternatives become more popular, they will eventually have a bigger impact on wholesale prices and bring them down. The proposed consultation would support changing the current pricing system and reducing overall energy costs while increasing the use of cheaper and cleaner electricity.
With energy demand forecast to double by 2035, these changes will play an important role in keeping the energy market on track and helping households cope with rising bills. As renewable energy gains prominence, UK investors can keep an eye out for the following renewable energy stocks with bright prospects.
Greencoat UK Wind plc (LON: UKW)
Greencoat UK Wind plc is a special purpose manager which gives investors exposure to the wind power and other renewable energy sectors. The FTSE 250 index has a market capitalization of £3,577.99 million as of July 19. With a positive EPS of 0.18, Greencoat offers investors an annual dividend yield of 4.7%. As of July 19, the company’s year-to-date and year-to-date returns are in the positive zone, at 15.99% and 9.89%, respectively. UKW shares were trading at 154.40 GBX as the market opened around 8:00 a.m. (GMT+1) on Tuesday.
The Renewable Infrastructure Group (LON: TRIG)
The Renewables Infrastructure Group falls under the FTSE 250 index and has a market capitalization of £3,349.35 million as of July 19. With a positive EPS of 0.10, Renewables Infrastructure Group offers investors an annual dividend yield of 5.0%. As of Tuesday, the company’s year-to-date and year-to-date returns were 6.39% and 0.37%, respectively. TRIG shares were trading at 134.80 GBX, down 0.15%, as of 8:10 a.m. (GMT+1) on Tuesday.
Downing Renewables & Infrastructure Trust plc (LON: DORE)
Downing Renewables & Infrastructure Trust plc is a trust that invests in wind, solar, hydropower and other renewable energy assets. The company has a market capitalization of £205.85 million as of July 19. Downing Renewables & Infrastructure Trust offers investors an annual dividend yield of 3.2%. As of July 19, the company’s year-to-date and year-to-date returns are in the positive zone, at 13.33% and 7.56%, respectively. TRIG shares were trading at 111.50 GBX as of 08:15 (GMT+1) on Tuesday.
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