Energy Market Reform Hopes For £110 Billion
By Anne Lewis-Schneider
British Energy Secretary Mr. Ed Davey has announced the release of The Electricity Market Reform Delivery Plan draft. The draft plan, which was released on Wednesday, pertains to the governmentís electricity market reform, and will not be finalised until September. This latest draft aims to raise the £110 billion necessary for the upgrade of Britainís electricity grid by 2020, and will do so by offering potential investors more certainty for their investment.
In his statement Ed Davey enthused about the new initiative, saying that no other sector is equal in magnitude to the British power market, in terms of investment opportunities, and the size of the infrastructure challenge. He said that the Delivery Plan will provide investors with further certainty of governmentís intent, thus encouraging the making of investment decisions that support green jobs and growth. He continued that the strike price, which is the fixed price at which renewable energy can be bought or sold, will turn the UK market into one of the most attractive for developers and investors in renewable energy.
Mr. Davey has said it is necessary to support technologies in their early stages of development, but that a constant look-out has to be kept for ways of reducing the costs for the consumers. He went on to say that in so doing, the environment will be protected, and that renewable energy can contribute more than 30% of the British power mix by 2020, thus maintaining the goal of significant decarbonisation of the power sector by 2030, which would meet Britainís wider climate target. The UK has been criticised for what would appear to be its lack of dedication to increase renewable sources in its energy mix. Mr. Davey hopes that this reform will turn that perception around.
Sadly, not everyone is as delighted with the reform. The head of Business Environment Policy at the EEF, Roger Salomone, has said that would-be investors are slowly getting the information they need to take projects forward, but that industrial consumers will be dismayed that no concrete plan is in place for future low carbon electricity. He said that a timeline setting out when technologies in receipt of subsidies, funded by the consumer, will be self-sufficient is urgently needed, and Oliver Hayes, from Friends of the Earth, said that the country would be prevented from achieving its emissions reduction target.
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