DECC updates Electricity Market Reform plans

The National Grid is to take on a pivotal role in delivering the Government’s new energy policies, says DECC. The National Grid will become the system operator for theFeed-in Tariff […]

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By Vicky Ellis

The National Grid is to take on a pivotal role in delivering the Government’s new energy policies, says DECC.

The National Grid will become the system operator for theFeed-in Tariff with Contracts for Difference and the capacity mechanism under the Government’s electricity market reform.

At Parliament today, energy secretary Chris Huhne announced the news in a technical update to the EMR White Paper.

Mr Huhne said: “A capacity mechanism provides an insurance policy against the risk of a capacity shortfall. Current estimates suggest that a problem could emerge in the medium-term – although accurate forecasting far ahead is difficult. That is why we need to put in place our insurance policy now; so we are covered against all possibilities and can respond as and when we need to.”

Nick Winser, National Grid’s executive director said: “There is still a lot of work to do, but we believe we are well placed to deliver these changes that will help provide secure and reliable energy supplies into the future.”

DECC also set out in more detail the arrangements for Renewable Obligation Certificates (ROCs) from 2027 onwards.