“Without electricity market reform, UK’s plan for green grid by 2035 is at risk”

The existing energy price cap needs to change, according to a report

Big Zero Report 2022

If the UK’s electricity market will not be reformed, the country could fail in building a 100% fossil fuel-free grid by 2035.

That’s the suggestion from think tank Onward, which suggests the government might have to delay its headline target of decarbonising the electricity sector by 2035 without reform.

Their study warns that the current price cap needs to change as it can’t fully protect customers and companies.

The authors of the report also note there are already “warning signs” that the current market isn’t designed to handle more renewables.

For this reason, they urge the government to harness markets to signal investors to build a coherent mix of technologies.

Markets should also be designed to ensure that these technologies are financed cost-effectively and operated efficiently.

John Penrose, MP for Weston-super-Mare, said: “Over the last 15 years, successive governments have introduced a byzantine array of schemes to support different technologies.

“But as Onward’s new report sets out, with almost all new projects getting some taxpayer-funded support, it’s not hard to see why it’s created a boom for lobbyists, with all the costs ultimately being passed on to customers.

“We should let energy firms find answers for our newly-modernised wholesale electricity market so they can buy the best of whatever they’ve got, rather than politicians trying to pick winners.”

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