THE DEPARTMENT of Energy and Climate Change yesterday published its draft electricity market reform (EMR) delivery plan, which is looking to raise £110bn to invest in new electricity infrastructure by 2020.
The draft document – which is under consultation until 25 September – gives further details on the Contracts for Difference support mechanism and strike prices for renewables, both of which aim to encourage investment in low carbon energy by diminishing price volatility.
Secretary of State Ed Davey said that the plan would “provide investors with further certainty of government’s intent” and support up to 250,000 jobs across the energy sector.
“The new strike prices will mean that renewables can contribute more than 30 per cent of our power mix by 2020, putting us on track to seeing significant decarbonisation of the power sector by 2030 and meeting our wider climate targets,” he added.
“The industry has been calling for certainty over the finer details of EMR and so any additional clarity is to be welcomed,” a spokesperson from big six energy firm SSE told City A.M.
“We will take time to digest the plans published today, but there is still a long way to go before we can tell whether the new mechanisms will be investable.”