The UK Government has pledged to improve access for independent renewable energy generators into the electricity market and make it easier for them to sell power to their suppliers.
Energy Minister Greg Barker today announced DECC has filed an amendment to the Energy Bill for independent generators to sell electricity via Power Purchase Agreements (PPA).
The new policy would enable the Government to oblige electricity suppliers to buy power from independent firms under specified conditions if they were unable to agree a commercial contract, which would be used as a last resort.
Independent generators have had trouble entering the energy market dominated by the ‘Big Six’ as they do not usually have a strong supply arm that sells electricity directly to consumers. They have had concerns about the market skewing towards the ‘Big Six’ at their expense.
Mr Barker said: “The Coalition is committed to driving much greater plurality, innovation and competition in the electricity market. Our new reforms will create the framework for a far more dynamic and entrepreneurial market, while still ensuring that we get the large scale investment that industry needs.
“Opening up the electricity market to more competition is a fundamental part of the reforms we are introducing through the Energy Bill. It will also allow new smaller players to gain a greater share of the exciting renewable electricity market.”
Detailed proposals will be developed and consulted later this year.