Is EMR working? Are Britain’s electricity market arrangements fit for purpose or broken?
The Energy Act 2013 introduced a set of arrangements known as Energy Market Reform but it was not till late 2017 that some of the key provisions of the Act began to take effect. Five years after the act only two Contract for Difference (CfD) auction rounds have been run and the first full forward purchase of capacity through the capacity market was only run for the winter of 2017/18
This Energy Futures Lab briefing paper will be a review of these electricity market arrangements in the UK. The paper will ask whether there is a need for fundamental reform to the arrangements as a result of the rising share of variable renewables such as wind and solar power. The review will be based on both a systematic appraisal of relevant evidence and interviews with stakeholders over the summer of 2018.
During the preparation for the briefing paper Energy Futures Lab produced a Discussion Paper on the topic, which was referenced by the Committee on Climate Change’s 2018 progress report.