Market reform will attract up to £110bn of private sector investment
Up to £110bn of private sector investment in the electricity sector is set to be unlocked with the publication today of the Electricity Market Reform Delivery Plan.
According to the Department of Energy and Climate Change (DECC) the investment is needed by 2020 alongside measures to improve the security of electricity supply, which will be made possible now that the Energy Bill has received Royal Assent.
DECC believes this provides investors and industry with the confidence they need to invest in the energy sector and also places a legal obligation on British governments to ensure the UK’s energy generating capacity is maintained while at the same time reducing emissions.
This package of measures will support up to a quarter of a million jobs, 200, 000 of which are so-called ‘green’ jobs in the renewable energy sector.
In related news, the European Commission has launched the next stage of its investigation into the agreement for Hinkley Point C.
The Contract for Difference for Hinkley Point C will be the first example of a new kind of agreement to unlock the investment needed for low carbon energy at the best possible price for consumers.
According to EDF, this investigation gives the government and others the opportunity to show that Electricity Market Reform in the UK is essential to deliver the investment needed for the country’s low carbon energy future at a price that is fair for customers. EDF assert that without this reform, the investment will not take place.
The European Union has made decarbonisation a priority and the UK has an obligation to reduce dependence on fossil fuels by increasing the use of low carbon technologies. Electricity Market Reform is designed to achieve that and it does so without offering any special treatment for nuclear power.