Released May 14, 2012 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The U.K. government is to push ahead with significant reforms to its electricity market later this year.
The annual Queen's speech to parliament scotched rumours that the government would delay its Electricity Market Reform (EMR) initiative, which includes the creation of the Green Investment Bank (GIB). In her annual speech she confirmed: "My government will propose reform of the electricity market to deliver secure, clean and affordable electricity and ensure prices are fair."
The energy reforms are expected to drive future investment in green energy projects, new gas-fired powers plants, and support the country's new nuclear build programme. A draft bill will be published 'shortly' according to the Department of Energy and Climate Change (DECC).
"This is crucial legislation," a DECC spokeswoman said. "The Energy Bill would reform the electricity market to keep the lights on and emissions down in a more cost-effective way, while reaping the economic benefits. It is designed to provide investors with long-term certainty and incentives to invest in low-carbon. We will shortly publish a draft Bill for pre-legislative scrutiny, to enable swift passage of well considered legislation."
She added: "We anticipate legislation reaching the statute book by 2013 so that the first low-carbon projects can be supported (as we originally envisaged) in 2014."
The announcement has been well-received although most energy groups are calling for greater clarity on details and the timetable.
Gaynor Hartnell, Chief Executive of the Renewable Energy Association (REA) said: "We look forward to seeing the details of the Energy Bill. This is of immense importance to project developers in renewables, as the measures it puts in place will eventually replace the Renewables Obligation. Many of the projects in development now are working to a timescale that takes them into the new regime, and they need to know the detail as soon as possible."
The Green Investment Bank (GIB), which will be headquartered in Edinburgh, Scotland, will be capitalised with 3.7 billion ($4.8 billion) to start with, but will not be able to borrow money until 2015. It's role will be to finance renewable energy projects at a 'near commercial' stage of development.
The government is proposing to introduce a Carbon Price Floor, which will put a steady price on carbon to provide a stronger incentive to invest in low-carbon generation projects. There will also be new long-term subsidy contracts to boost investment in renewables. The reforms will see the introduction of the Emissions Performance Standard (EPS), set at 450g CO2/kWh, which will prevent any new coal-fired plants from being built without carbon capture and storage (CCS) technology.
However, gas-fired plants will escape the measure as the U.K. desperately needs new gas-fired capacity to be built in order to offset a looming energy crisis caused by the closure of older plants. In March, Edward Davey, the Energy and Climate Change Secretary revealed that, as part of the EMR, all new gas-fired plants can run without any CCS technology until 2045. The controversial decision is designed to boost investment in the sector but has been slammed by renewable energy and environmental bodies. For additional information see March 21, 2012, article - Big Boost for U.K. Gas-Fired Plants.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The annual Queen's speech to parliament scotched rumours that the government would delay its Electricity Market Reform (EMR) initiative, which includes the creation of the Green Investment Bank (GIB). In her annual speech she confirmed: "My government will propose reform of the electricity market to deliver secure, clean and affordable electricity and ensure prices are fair."
The energy reforms are expected to drive future investment in green energy projects, new gas-fired powers plants, and support the country's new nuclear build programme. A draft bill will be published 'shortly' according to the Department of Energy and Climate Change (DECC).
"This is crucial legislation," a DECC spokeswoman said. "The Energy Bill would reform the electricity market to keep the lights on and emissions down in a more cost-effective way, while reaping the economic benefits. It is designed to provide investors with long-term certainty and incentives to invest in low-carbon. We will shortly publish a draft Bill for pre-legislative scrutiny, to enable swift passage of well considered legislation."
She added: "We anticipate legislation reaching the statute book by 2013 so that the first low-carbon projects can be supported (as we originally envisaged) in 2014."
The announcement has been well-received although most energy groups are calling for greater clarity on details and the timetable.
Gaynor Hartnell, Chief Executive of the Renewable Energy Association (REA) said: "We look forward to seeing the details of the Energy Bill. This is of immense importance to project developers in renewables, as the measures it puts in place will eventually replace the Renewables Obligation. Many of the projects in development now are working to a timescale that takes them into the new regime, and they need to know the detail as soon as possible."
The Green Investment Bank (GIB), which will be headquartered in Edinburgh, Scotland, will be capitalised with 3.7 billion ($4.8 billion) to start with, but will not be able to borrow money until 2015. It's role will be to finance renewable energy projects at a 'near commercial' stage of development.
The government is proposing to introduce a Carbon Price Floor, which will put a steady price on carbon to provide a stronger incentive to invest in low-carbon generation projects. There will also be new long-term subsidy contracts to boost investment in renewables. The reforms will see the introduction of the Emissions Performance Standard (EPS), set at 450g CO2/kWh, which will prevent any new coal-fired plants from being built without carbon capture and storage (CCS) technology.
However, gas-fired plants will escape the measure as the U.K. desperately needs new gas-fired capacity to be built in order to offset a looming energy crisis caused by the closure of older plants. In March, Edward Davey, the Energy and Climate Change Secretary revealed that, as part of the EMR, all new gas-fired plants can run without any CCS technology until 2045. The controversial decision is designed to boost investment in the sector but has been slammed by renewable energy and environmental bodies. For additional information see March 21, 2012, article - Big Boost for U.K. Gas-Fired Plants.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
