On 21 April 2026, the Dept. for Energy (DESNZ) announced plans to introduce voluntary long term fixed contracts to low-carbon generators, also known as Wholesale Contracts for Difference (WCfD). Like the existing CfD mechanism, a WCfD would provide developers with a set rate for any electricity produced over a specific period. The aim of introducing WCfDs is to de-couple electricity and gas prices, preventing bills from skyrocketing if gas prices spike.

DESNZ are planning on running a consultation on WCfD towards the end of 2026. However, they are keen to gather REA members’ views, in particular on the following questions:

1) Who should a WCfD be available to?
2) What would make a WCfD commercially attractive?
3) How much value would industry place on a “hybrid” WCfD (this refers to a combination of CfD and existing Renewables Obligation (RO) revenues)
4) What wider market impacts should Government consider?

This roundtable is a great opportunity for REA members to shape Government thinking on this key issue, well before a consultation is released publicly.