Electricity Market reform - radical changes proposed

Published on Thursday, 16 December 2010 11:41
Posted by Scott Buckler

The UK Energy Research Centre (UKERC) has welcomed the government’s consultation paper on electricity market reform issued today (16 December)For the UK to meet its carbon emission reduction targets, the energy supply system will need to be well on the way to being decarbonised by 2030. In order to achieve this objective, levels of investment are needed that the energy utilities alone almost certainly cannot deliver. At the same time reliability of supply needs to be ensured and costs for customers kept down.


Over the last 20 years the current electricity market arrangements have served their purpose. However they were designed around controllable conventional generation capacity. It has become evident they cannot deliver the new policy ambitions involving low carbon energy generation methodologies with high capital costs, intermittent generation and inflexible capacity.

Professor Jim Skea, research director of UKERC welcomed the government’s apparent willingness to tackle the challenges facing the decarbonisation of the energy supply system,

“The government appears to have grasped the nettle and proposed radical reform that takes on the challenges of low carbon, adequacy of investment, reliability and affordability.”

“Getting the energy market right is one of the most critical elements of our new energy future, but the details will need to be carefully examined. UKERC looks forward to making an active contribution to the ongoing policy process”.

Source: ©UKERC

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