The Energy Systems Catapult has proposed a variety of new electricity market reforms as it warns that the current government-directed system risks stifling new smart technologies. This comes as part of a new report, which detailed how the Energy Act 2013 and accompanying electricity market reforms (EMR 1.0) helped accelerate the deployment of renewables, the mechanisms – with the Contracts for Difference (CfD) and Capacity Market schemes being included within these reforms – were designed for a much less mature market. The Catapult said the current framework is now progressively undermining wholesale electricity markets and creating a “perpetual reliance” on government decision-making to drive technology choices. In particular, it warned that the CfD and Capacity Market risk inhibiting innovation, misallocating investment, causing system inefficiencies, unfairly weighting investment into generation technologies over demand-side technologies and restricting new entrants and innovation.
Current 31st March 2021 read more »
Rethinking Electricity Markets is an Energy Systems Catapult initiative to develop proposals to reform electricity markets so that they best enable innovative, efficient, whole energy system decarbonisation. It is nearly a decade since the UK Government began to implement its Electricity Market Reform (EMR 1.0). Including major mechanisms such as Contracts for Difference (CfD) to support investment in low carbon generation and a new Capacity Market (CM) to ensure resource adequacy. These kickstarted the rapid decarbonisation of the GB electricity system and drove extraordinary innovation and cost reduction, especially in offshore wind.
Energy Systems Catapult 31st March 2021 read more »
There is pressure on the UK Government to share plans for overhauling the electric grid to remove “unnecessary barriers” to renewable developments in Scotland. Aberdeen South SNP MP Stephen Flynn has written to Anne-Marie Trevelyan, Westminster’s energy minister, to highlight the uneven playing field caused by “out of date” system.
Energy Voice 1st April 2021 read more »