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ARTICLE · 29 NOVEMBER 2012

Government Clears Way For EMR

MacRoberts
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The UK Government has announced a package of coalition decisions allowing progress on the long-awaited Energy Bill, which is expected to be introduced this week.

United KingdomEnergy and Natural Resources
Michael Murphy
Michael Murphy
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The UK Government has announced a package of coalition decisions allowing progress on the long-awaited Energy Bill, which is expected to be introduced this week:

  • The creation of a Government-owned company to act as a single counterparty for Contracts for Difference for low carbon electricity projects.
  • Powers to introduce a capacity market, allowing for capacity auctions from 2014 for delivery of capacity in the winter of 2018/19

The amount of market support to be available for low carbon electricity investment (under the Levy Control Framework) up to 2020 has been set at £7.6 billion. This is intended to support the UK's diversification of our energy mix by increasing the amount of electricity coming from renewables (and so reduce our dependency on gas imports) as well as supporting new nuclear power and carbon capture and storage commercialisation.

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