The Government have committed to fully decarbonising electricity generation by 2035. To understand the challenges this will pose for electricity markets, and what the solutions might need to look like, the CCC has published the report of an independent expert group. The group was chaired by Duncan Sinclair, Baringa, and consisted of:
- Will Blyth, Oxford Energy Associates
- Kisha Couchman/Adam Berman, Energy UK
- Rob Gross, UCL/UKERC
- Gauri Kasbekar-Shah, Edmond de Rothschild Asset Management
- Andy Manning, Citizens’ Advice
- Dan Monzani, Aurora Energy Research
- David Newbery, EPRG/Cambridge University
- Rebecca Williams, Global Wind Energy Council
- Observer: Apu Shah, BEIS
- Observer: Eleanor Wood, Ofgem
It should be noted that the work of the Expert Group pre-dated the publication of the REMA consultation.
The views expressed in the report are those of the Expert Group and not the CCC.
2. Key messages
- The Group considered that the biggest challenge in the 2020s will be mobilising the huge investment needed in low–carbon generation, storage and networks. In the 2030s the biggest challenges will be the efficient operation of the low–carbon electricity system, with a much more dynamic demand side once electric vehicles and heat pumps are more widespread.
- The Group concluded that evolutionary reform of current Contracts for Difference, combined with stronger locational signals, and associated changes to the Capacity Market could address a number of the challenges identified and ensure stability from an investor confidence perspective.
- The Group identified there are other key challenges that none of the options satisfactorily addressed. More work is needed to develop options which address these challenges.