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May 2012: Draft Energy Bill Published

Posted by Chloe Bennett on 22nd May 2012

Today the Department of Energy and Climate Change published the long awaited Draft Energy Bill which includes details of the UK Electricity Market Reform (EMR). 


The EMR details how the government intends to plan the future of the UK’s electrical market and how we can move our traditionally sourced supply to meet our green energy targets of 15% by 2020 and 80% by 2050.

For those who don’t want to flick through the 302 page document, we have outlined the key points from the EMR below and defined the two main revisions.

To secure the investment needed to deliver a reliable and sustainably diverse low carbon technology mix.

To help maintain the government’s long term vision of creating a market full of low carbon energy generators that perform fairly and at stable carbon price’s. This vision is at least 10-15 years away as many carbon generators are still in the midst of development.

Provide key processes that enable us to meet and enforce the long term vision.

Government hope to achieve these objectives through the following two revisions;

The government have appointed the National Grid as an independent System operator to provide analytical basis for government decisions.

The government have also asked the National grid to administer new systems of low-carbon generation revenue support known as ‘Contracts for Difference’ (CfDs) and a Capacity Market.

By announcing these two main reforms, are positives steps towards a safer future and will leave the UK less vulnerable to growing energy prices and relieving some of the stress of the 250,000 jobs in the energy sector.

The full Draft Energy Bill can be read by clicking here.



Categories: renewable energy, government