Helping you make sense of the energy and water sectors


The GB Electricity Market 2017: Revolution, Renewal and Reinvention

The publication of the wide-ranging Competition and Markets Authority (CMA) investigation[1], implementation of significant curbs on onshore renewables, proposals for widespread reforms commencing in network charging, embedded benefits and proposed tightening policies relating to coal closure are some of the many critical regulatory developments that unfolded during the year. These changes combined with the impact of Brexit on the electricity market have created a cocktail of uncertainty.

BEIS also expects to publish an Emissions Reduction Plan by Q1 2017, after approving the Firth Carbon Budget to limit 57% below 1990 levels by the year 2032. The focus is likely to be centred on transport and heat systems, but will still have impacts on the generation sector and set a plan for the low carbon economy.

But, however much policy and regulation sometimes alters the pace of the journey, shifts in market fundamentals – if they are powerful enough - inexorably determine the destination, nevertheless this will not slow down the rapid innovation in business models and technology.

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Tom Palmer, Cornwall Insight Principal Consultant commented

“This insight paper considered the changes in 2017 such as growth in renewables, disruptions, embedded benefit reform and the consequences for the GB Electricity in 2018 and beyond”