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ARTICLE · 08 JANUARY 2025

REMA Update: What Next For REMA?

Gowling WLG
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The UK government's REMA update addresses reforms for renewable energy market challenges, CfD scheme stability, zonal pricing considerations, and phasing out unabated gas. Finalized policies are expected by mid-2025, offering clarity for AR7 bidders.

CanadaEnergy and Natural Resources
Russell Evans
Russell Evans
James Stanier
James Stanier
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The Department for Energy Security and Net Zero (DESNZ) originally launched the Review of Electricity Market Arrangements (REMA) in 2022 as a means of cooperating with industry stakeholders to work out how best to reform the energy market for a modern Great Britain.

The energy market, initially designed for an industry reliant on fossil fuels, requires reform to cater for the unpredictability of supply from renewable generators such as wind and solar as well as the greater exposure to external markets.

The auction for Allocation Round 7 (AR7) of the Contracts for Difference (CfD) scheme is due to open later this year and, following stakeholder feedback gathered so far, the government has sought to reassure bidders ahead of AR7 by clarifying the points below:

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