September 2020
Price: £95 PLUS VAT
Format: DOWNLOADABLE PDF
***Full-scale policy conference taking place online***
This conference will assess the future of Electricity Market Reform in the UK.
Development and the discussion at a glance:
It takes place at a time of important developments for the energy sector, with:
- Capacity Market auctions taking place again in 2020 following the consent of the EU Commission
- the UK Government announcing the likely return of pot 1 Contracts for Difference auctions in 2021 - restoring market and commercial support for onshore wind and solar power
The discussion is bringing together key stakeholders and policymakers to examine:
- UK energy markets - further steps for support, development, and protection
- affordable and decarbonised energy supplies - latest thinking on accelerating the delivery
The discussion in detail:
The framework for auctions in 2020 and 2021
- progress and next steps:
- examining the three capacity market auctions in Q1 2020 - T-3, T-4, and a top up T-1 - with low clearing prices
- further auctions - priorities for ensuring that they continue to include a diversity of energy supply, including generation, demand side response, and interconnection
- the next Capacity Market auctions:
- looking ahead - to the T-1 scheduled for January 2021 and a T-4 for February 2021
- organisational priorities - establishing stable auction parameters, and operational support for auction participants, and mitigating disruption caused by the pandemic
- The CfD Allocation Round 4 auctions scheduled for 2021 - priorities for integrating recommendations from the CfD consultation, looking at widening the technology base, reinstating Pot 1 auctions, and supporting regional growth with targeted capacity construction
The Capacity Market
- priorities - how best to ensure that the CM is fit for purpose, and can deliver reliable, cost effective, and decarbonised power supplies to the UK energy system
- the EU Commission investigation - what can be learned on how improvements might be designed and implemented, including:
- amended auction rules - increasing the participation of non-generation technologies like demand side response
- realising the opportunities - for supporting smart energy business models, and reduced energy costs for consumers
- participation and competition - options for lowering the capacity threshold, simplifying rules and regulations, and reducing barriers to entry by making the process more transparent
- The COVID-19 health emergency - learning from measures aim at minimising disruption, including maintaining capacity, protecting security of supply, and adapting the enforcement framework
Contracts for Difference
- maintaining progress - ensuring CfDs continue to scale up clean and emerging generation technologies, as well as reduce technology costs and bills for consumers
- extension - to 2030, and what this might mean for further reducing commercialisation costs, expanding onshore and offshore clean energy capacity, and supporting business development
- innovation - utilising CfDs to further develop clean generation, and support the rollout of technology such as floating offshore wind and tidal, and
- the pricing system - options for keeping strike prices low through widening participation and competition, and reforming negative pricing rules, so that excess capacity is not subsidised unnecessarily
Infrastructure and regulation
- infrastructure - modernising the electricity network, ensuring it can meet supply and demand pressures, and integrating clean generation
- the grid - ensuring it is flexible, can balance supply, and procure capacity and distributed generation at the lowest costs for network users
- the regulatory system - options for reform to support the EMR programme and market growth, reduce barriers to entry, harness smart and flexible technologies, and foster competition
A scan of relevant developments:
- Policy commitments - in the Budget and the Government’s manifesto - for supporting development of new energy technologies and their contribution to national decarbonisation goals, including:
- the Energy Innovation Programme - plans for it to at least double in size by the end of this Parliament
- offshore wind - delivering 40GW of capacity for the UK by 2030
- wind and solar - continuing to reduce the costs while increasing its presence in the UK energy system, as well as keeping costs low for consumers
- R&D - increasing public funding to £22bn a year by 2024-2025
- The planning system for electricity storage - relaxation of rules by the Government, aimed at encouraging investment and uptake of the green technology
- The Capacity Market (CM):
- Capacity Market auction determination - confirming the intention to hold two Capacity Market auctions next year: the T-1 auction for 2021-2022 and T-4 auction for 2024-2025
- Capacity Market: proposals for future improvements - government accepting the majority of measures following the response to its consultation
- State aid: Commission approves the British Capacity Market scheme - following the EC investigation on whether the CM violated state aid regulations and discriminated against certain technology types
- Contracts for Difference (CfD):
- Contracts for Difference (CfD): proposed amendments to the scheme - government’s consultation on changes to system design, pricing, and on maximising low-carbon potential for net-zero
- onshore wind and solar power - the announcement that the ban on Pot 1 technologies will now be lifted for CfDs
The agenda:
- Electricity Market Reform and priorities for development a year on from the EU Commission investigation
- Incorporating non-generation technologies and lessons from the Commission study - widening market access, maximising distributed assets, and enhancing flexibility
- Recosting energy fit for the transition
- Navigating through the CM process in disruptive times - addressing stability, environmental challenges, and meeting consumer demand
- Preparing the transmission network for diverse technologies, the net-zero target, and keeping procurement costs low
- Ensuring the regulation system supports market growth, supplier and technology competition, and reduces barriers
- CfD auctions and priorities for Pot 1 and Pot 2 participants - incorporating onshore technologies, fostering innovation, and accelerating strike price reductions
- The future of EMR in the UK, and policy priorities for widening participation and supporting stakeholder operations through challenging conditions
Policy officials attending:
Our forums are known for attracting strong interest from policymakers and stakeholders.
It’s certainly the case with this one. Places have been reserved by officials from BEIS; the Cabinet Office; the Foreign and Commonwealth Office; the National Audit Office; Defra; the Committee on Climate Change; Crown Commercial Service; the Department for the Economy, NI; the Department for International Trade; the Health and Safety Executive; The Scottish Government; the Office of the Secretary of State for Wales; the Welsh European Funding Office and the Welsh Government.
This is a full-scale conference taking place online***
- full, four-hour programme including comfort breaks - you’ll also get a full recording to refer back to
- information-rich discussion involving key policymakers and stakeholders
- conference materials provided in advance, including speaker biographies
- speakers presenting via webcam, accompanied by slides if they wish, using the Cisco WebEx professional online conference platform (easy for delegates - we’ll provide full details)
- opportunities for live delegate questions and comments with all speakers
- a recording of the addresses, all slides cleared by speakers, and further materials, is made available to all delegates afterwards as a permanent record of the proceedings
- delegates are able to add their own written comments and articles following the conference, to be distributed to all attendees and more widely
- networking too - there will be opportunities for delegates to e-meet and interact - we’ll tell you how!
Full information and guidance on how to take part will be sent to delegates before the conference
