Kate Mulvany, Principal Consultant at Cornwall Insight:
“Today’s announcements by the government on their ‘Clean Power 2030 action plan’ leaves critical questions unanswered. While the focus on infrastructure and connections reform is welcome, the lack of clarity around electricity market reforms remains a significant barrier, threatening low-carbon investment and the achievement of the ambitious 2030 target.
“A key concern is the uncertainty surrounding the Review of Electricity Market Arrangements (REMA). Developers face a stalemate, unable to commit the necessary capital and resources without a clear understanding of how changes will impact the Contract for Difference scheme, the Capacity Market, network charging or other key areas. This risk of an investment freeze underscores the urgent need for greater transparency and direction.
“Proposed fundamental reforms, most notably the shift away from national wholesale pricing, would require a substantial overhaul of regulations, contracts and systems, and have significant commercial implications for developers. These decisions cannot simply be pushed back, without jeopardising Clean Power 2030 ambitions, and ultimately value for money for billpayers. The Government must act swiftly and decisively on REMA, ensuring a transparent, comprehensive consultation process that provides clarity to all those impacted.
“Delays or poor outcomes from this reform process will only increase the risk of missing the Clean Power target, as market participants continue to withhold investments in the face of uncertainty. Without the necessary regulatory and policy clarity, Clean Power 2030 will be an increasingly unrealistic goal, and the sector may face the consequences of a rushed, legislative fix that could further undermine progress.”
