Call for evidence on the first Electricity Market Reform (EMR) delivery plan

10 October 2012

Introduction

National Grid has announced a call for evidence to inform the first Electricity Market Reform (EMR) delivery plan. Comments are due by 3 December.

For details go to: www.decc.gov.uk/en/content/cms/news/pn12_121/pn12_121.aspx

Renewable Solutions – your opportunity to understand implications of EMR
EMR will be a key theme at this year’s Renewable Futures conference on 20 November giving you an opportunity to explore the implications before responding. Bernie Bulkin from DECC will be discussing the plans and we will hear from leading industry figures and financiers about the impact. Details of the conference can be found at www.regensw.co.uk/events/regen-sw-events-/renewable-futures-annual-conference-and-exhibition

Key Issues
The call for evidence seeks input on two key points:

• To review technology cost and deployment potential assumptions and ensure that the most up to date data for the projects commissioning towards the end of the Renewables Obligation (due to close to new projects on 1 April 2017) and beyond are taken into account
• To understand the differences in investment decisions under the Renewables Obligation and Contracts For Difference, and how choices will be made between the two mechanisms.

Comment
As we get closer to EMR, the extent of the impact on the renewables sector is beginning to become clear. Whilst we are facing a blizzard of consultations, it is important that we consider and respond before things are set in stone.

A key concern is that the Contract for Difference approach is in danger of excluding smaller and independent renewable generators. The removal of the Renewables Obligation means there would be no obligation on suppliers to buy renewable electricity, meaning there would be no guaranteed market for generators. Vertically integrated electricity suppliers with their own demand are likely to be better placed.

One potential solution that has been proposed is a fixed feed-in tariff for projects up to 50 MW. 

Regen will be using Renewable Futures to explore the impact of EMR with our sector in more detail.