Policy Submissions

S897 - Electricity Market Reform (EMR)

Description

Consultation on Electricity market reform: IET, Royal Academy of Engineering and Institution of Chemical Engineers comments to the Department of Energy and Climate Change (DECC).


Abstract

The Government’s intention to reform the electricity market is welcomed. However, the reforms appear designed as individual ‘bolt-ons’ to the current (already complex) market structure to fix a series of market failures limiting deployment of different generation technologies. It is unclear whether the proposed arrangements have given the handling of demand response and storage full consideration. There does not seem to be either a policy instrument or the market freedom to determine the capacity mix of different generation technologies. It is vital that a smart grid is deployed on a timescale commensurate with the currency of the proposed reform.

Submission Details Submitted on 10 March 2011 to Department of Energy and Climate Change (DECC)


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Keywords and Search Terms Electricity supply industry, Electricity generation, Power generation, Regulation, Government policy, Energy demand, Energy storage, Smart grid, Environment, Investment, Security of supply, Decarbonisation, Tariffs, Feed-in tariffs