UK Eyes Power Overhaul

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The UK government said this week it is looking at ways to change wholesale electricity market rules so that natural gas no longer plays a dominant role in setting the nation's power prices. The government said "proposals out for initial consultation include exploring changes to the wholesale electricity market that would stop volatile gas prices setting the price of electricity produced by much cheaper renewables." It said it is looking for ways to introduce incentives for consumers to use cheaper electricity when there is plenty of wind and sunshine, and reform markets so that technologies such as energy storage are better supported. The UK electricity generation mix comprises roughly 50% renewables and other low-carbon sources, and 48% gas. Over the last year, gas accounted for only 40.8% of the electricity generated in the UK, but it is gas that typically sets wholesale prices.

Low-Carbon Policy, Electricity Prices, Gas-Fired Electricity, Gas Prices, Renewable Electricity
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