Rethinking Electricity Markets – Energy Systems Catapult
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.
While the EMR 1.0 policies have been successful in transforming the cost of renewables, the context has changed in important ways since they were first introduced.