![Polizeiautos mit drehendem Licht 🚨](https://abs.twimg.com/emoji/v2/72x72/1f6a8.png)
GB electricity market isn't ready for more wind & solar:
![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
![Thread 🧵](https://abs.twimg.com/emoji/v2/72x72/1f9f5.png)
UK Government's programme of Electricity Market Reform (early-2010s) has driven a decade of progress.
Carbon emissions down >60% ![Pfeil nach unten ⬇️](https://abs.twimg.com/emoji/v2/72x72/2b07.png)
Electricity bills ~flat ![Fettes weißes Häkchen ✅](https://abs.twimg.com/emoji/v2/72x72/2705.png)
Blackouts largely averted ![Fettes weißes Häkchen ✅](https://abs.twimg.com/emoji/v2/72x72/2705.png)
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![Fabrik 🏭](https://abs.twimg.com/emoji/v2/72x72/1f3ed.png)
![Pfeil nach unten ⬇️](https://abs.twimg.com/emoji/v2/72x72/2b07.png)
![Banknote mit Pfund-Zeichen 💷](https://abs.twimg.com/emoji/v2/72x72/1f4b7.png)
![Fettes weißes Häkchen ✅](https://abs.twimg.com/emoji/v2/72x72/2705.png)
![Hochspannungszeichen ⚡️](https://abs.twimg.com/emoji/v2/72x72/26a1.png)
![Fettes weißes Häkchen ✅](https://abs.twimg.com/emoji/v2/72x72/2705.png)
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However, conditions during lockdown exposed flaws in the design of Great Britain's electricity market.
Electricity demand fell 15%
Market share of wind was higher than normal
System balancing costs went
by two thirds (+£220m)
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![Tabelle mit Abwärtstrend 📉](https://abs.twimg.com/emoji/v2/72x72/1f4c9.png)
![Tabelle mit Aufwärtstrend 📈](https://abs.twimg.com/emoji/v2/72x72/1f4c8.png)
![Banknote mit Pfund-Zeichen 💷](https://abs.twimg.com/emoji/v2/72x72/1f4b7.png)
![Pfeil nach oben ⬆️](https://abs.twimg.com/emoji/v2/72x72/2b06.png)
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By 2050, wind and solar will provide most electricity in Great Britain.
Without reforms to the market, system balancing costs will rise as wind and solar grow.
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Without reforms to the market, system balancing costs will rise as wind and solar grow.
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We propose four principles for the next stage of Electricity Market Reform.
Includes renewed focus on the "Energy Trilemma", which has gone out of fashion recently.
Energy Trilemma = Secure, affordable, low-carbon energy system.
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Includes renewed focus on the "Energy Trilemma", which has gone out of fashion recently.
Energy Trilemma = Secure, affordable, low-carbon energy system.
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Government should make reforms in 3 areas
Local electricity pricing in wholesale market
'Floor-price CfDs' for renewables
Low-carbon quota in the Capacity Market
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![Tastenkappe Ziffer 1 1⃣](https://abs.twimg.com/emoji/v2/72x72/31-20e3.png)
![Tastenkappe Ziffer 2 2⃣](https://abs.twimg.com/emoji/v2/72x72/32-20e3.png)
![Tastenkappe Ziffer 3 3⃣](https://abs.twimg.com/emoji/v2/72x72/33-20e3.png)
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![Tastenkappe Ziffer 1 1⃣](https://abs.twimg.com/emoji/v2/72x72/31-20e3.png)
With local pricing, electricity prices will be different from town-to-town and at different times of day.
Will mainly impact wind farms, power stations and energy storage, but could also change how residential customers pay for electricity.
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Local pricing could save customers £2bn per year, or £50bn by 2050.
According to modelling by @AuroraER_Oxford, commissioned by @Policy_Exchange.
Could reduce average household electricity bill by £37 per year.
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According to modelling by @AuroraER_Oxford, commissioned by @Policy_Exchange.
Could reduce average household electricity bill by £37 per year.
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Local pricing would help industry in coastal industrial hubs with lower energy prices.
Coastal hubs should benefit from lower energy prices as close to
abundant offshore wind
Could boost green manufacturing, incl. low-carbon hydrogen, data centres, and green steel
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![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
![Flagge des Vereinigten Königreiches 🇬🇧](https://abs.twimg.com/emoji/v2/72x72/1f1ec-1f1e7.png)
![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
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![Tastenkappe Ziffer 2 2⃣](https://abs.twimg.com/emoji/v2/72x72/32-20e3.png)
![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
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![Tastenkappe Ziffer 3 3⃣](https://abs.twimg.com/emoji/v2/72x72/33-20e3.png)
![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
![Nach rechts zeigendes Dreieck ▶️](https://abs.twimg.com/emoji/v2/72x72/25b6.png)
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Our proposals aim to be a second phase of Electricity Market Reform ('EMR 2')
Further reforms likely to be needed in the 2030s.
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Further reforms likely to be needed in the 2030s.
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Full report and summary slides are available on our website
13/13 https://policyexchange.org.uk/publication/powering-net-zero/
13/13 https://policyexchange.org.uk/publication/powering-net-zero/