The Reform of the UK Electricity Market Summit

Copthorne Tara Hotel, Kensington, London September 6th 2011

Organised by City & Financial, The Reform of the UK Electricity Market Summit: Analysing the White Paper's proposals and implementation challenges for electricity maket participants is being held shortly after the publication of DECC's White Paper, which is due to be published in the summer.

The UK's electricity market is facing an unprecedented investment challenge. Even as energy efficiency is improved, demand is set to double by 2050, but our existing capacity is ageing rapidly and a quarter of it needs to be replaced by 2020. At the same time, the power market needs to lead the decarbonisation of the economy and 30% needs to come from renewable sources (up from 7% today). While gas-fired generation is currently the lowest cost and lowest risk investment, the Government wants to reform the market so that there is equal access to the electricity market for a wider range of technologies, such as wind, nuclear power and CCS. The shape of this proposed reform was set out in the Government's December 2010 consultation document and will be presented in more definitive form in the White Paper, which will, of course, factor in the responses received during the consultation process.

In addition to the White Paper, HM Treasury has published proposals to set a price floor for carbon, designed to give certainty to investors in low-carbon generation. Ofgem's review into the liquidity of the electricity market is also a key part of the overall reforms.

Investment of around £200 billion is required in generation, electricity networks and gas infrastructure. Of this, at least £110 billion will be needed in new generation and transmission assets in electricity - over double the rate of the last decade. In a world of global competition for capital, this means increased investment by existing market participants and, in addition, seeking investment from new sources of capital.

Chris Bronsdon, CEO of SEGEC, shall participate in the panel debate, examining long-term contracts for low-carbon generation via the 'contract for difference' (CfDs) feed-in tariff (FITS). 

 

For further information about this event and to register, please click here