REMA

  • Energy Market Design

    Are prices going to rise in Contracts for Difference Allocation Round 5?

    A number of factors may be about to put an end to the trend for falling energy prices in the Contracts For Difference (CfD) scheme. The CfD scheme has provided strong subsidy support whilst also providing consumers robust levels of protection. High investor confidence and steady reductions in capital costs...

  • Business supply and services

    What happened in 2022 in the energy market?

    The GB energy market never stands still and 2022 was no different. In this infographic, we look back at some key happenings from the past year in different segments of the GB energy market.  Click the image below to see our snapshot.

  • E-mobility and low carbon

    2022’s most exciting ‘Charts of the Week’

    Some of our team have looked back throughout 2022 and picked their most exciting ‘Chart of the Week’.​Their choices include exploring green tariffs, wholesale gas prices, CfD allocation round 4 and the MHHS Implementation Levy.  It’s My Birthday – Two years of Dynamic Containment Picked by Tom Faulkner, Head of...

  • Energy storage and flexibility

    “Co-location, co-location, co-location”: Benefits and challenges

    Key take-aways of the launch event   By Jamie Maule, Dr Matthew Chadwick & Nick Fothergill (Partner – Weightmans LLP) As part of the UK’s transition to net zero, the electricity generation mix needs to evolve, with increasing amounts of renewable capacity required to meet net zero commitments. To maximise...

  • Low carbon generation

    Video podcast: What is REMA and why is it needed?

    Join our energy experts, Senior Consultant, Kate Mulvany and Research Partner, Dr. Dan Atzori as they discuss the Review of Electricity Market Arrangements (REMA), why it is needed, how the energy market is reacting and responding to it and how Cornwall Insight can help businesses navigate REMA. Watch the full...

  • Low carbon generation

    UKERC issues response to REMA consultation

    On 3 November, UK Energy Research Centre (UKERC) published a response to BEIS’ Review of Electricity Market Arrangement (REMA) consultation. Our experts discuss what the response addresses and how some of the proposals would place new responsibilities on retail energy suppliers. Read the full blog on our What is REMA portal, which...

  • Low carbon generation

    62% of respondents think there is a 2 in 5 chance the GB electricity system will be decarbonised by 2035

    Our latest Net zero transition: Future of electricity markets online training course was held on 15 – 17 November, where we asked delegates for their thoughts on several aspects of the future of the GB electricity market. The polls can be seen in our newest REMA portal - a hub...

  • Low carbon generation

    Financing Net Zero: A (revenue) cap on UK merchant financing opportunities?

    On 13 October 2022, we hosted the latest instalment of our ‘Financing Net Zero’ webinar series. The session, sponsored by Shoosmiths, focused on opportunities and challenges for merchant financed renewable projects amid the current wholesale price volatility.   In this blog, we discuss how the ‘revenue cap’ for renewable generators and the...

  • Energy Market Design

    Financing Net Zero: A (revenue) cap on UK merchant financing opportunities?

    On 13 October 2022, we hosted the latest instalment of our ‘Financing Net Zero’ webinar series. The session, sponsored by Shoosmiths, focused on opportunities and challenges for merchant financed renewable projects amid the current wholesale price volatility.   In recent years, due to the increasing success-rate and profitability of renewable projects,...

  • Energy storage and flexibility

    From zero to hero: Can CfDs split markets and reduce costs this winter?

    Given media comment on the imposition of a revenue cap for low carbon generators instead of migration of existing projects onto a CfD, please find below a blog published by Cornwall Insight three weeks ago. Not only did this note the possibility of the revenue cap being a fall back...

  • Business supply and services

    Our initial response to the government energy announcement

    We welcome the government’s objective to address the affordability of energy for both domestic and business consumers in the UK. The policy announcements made today will alleviate some of the hardship consumers have been concerned about for many months.   On the household side of the equation, industry thinking is...

  • Energy Market Design

    How does REMA impact energy generation, flexibility and consumers?

    The Review of Electricity Market Arrangements (REMA) is the largest review programme of GB electricity market arrangements for a generation. It comes at a time when European energy markets are suffering extreme turmoil. Depending on the outcome there could be significant implications for generators, flexibility providers, and, indirectly, consumers. REMA...

  • Energy Market Design

    REMA: electricity market design choices

    Electricity markets will serve as the foundation for the future GB energy system.  This article examines some of the market design decisions that will be considered by the Review of Electricity Market Arrangements (REMA). Market design goals At its most simple, a well-functioning market will attract enough potential “buyers” and...

  • Energy Market Design

    Can we fix the wholesale energy market this winter to lower prices and should we want to? 

    The Review of Electricity Market Arrangements (REMA) is intended to discuss and decide on appropriate market arrangements for 2035 in a Net Zero, low marginal cost, renewables-dominated market. It is unlikely it has the scope or capability to intervene in the market arrangements ahead of this winter. Therefore, some new interventions...

  • Commercial and market outlook

    Capacity, reform, and unlawful strategies: 5 things that happened yesterday

    Capacity, reform, and unlawful strategies: yesterday was a busy day for energy geekery. The developments encapsulate the shorter and longer term challenges and uncertainties present in the energy market presently: Read the full article here

  • Commercial and market outlook

    Two thirds of energy industry professionals think the market needs to be drastically reformed

    A survey conducted of over one hundred leading energy market professionals from across the investment and advisory community, by Cornwall Insight, from the attendees of its Financing Net Zero forum, has shown nearly two thirds (63%) of people working in the energy industry1 believe the UK market needs to be...

  • Commercial and market outlook

    Reaction to BEIS consultation on the Review of Electricity Market Arrangements

    Confirming the Review of Electricity Market Arrangements (REMA) opens the prospect of a complete overhaul of the electricity market in Great Britain for the first time in over 20 years. The scope is very wide and the perceived need for reform clear from BEIS in the consultation document, with much...

  • Low carbon generation

    3G meets in-person| Lots discussed in our low carbon user group

    Last week I took a trip to sunny central London to attend Cornwall Insight’s Green Generators Group (3G), which is the user group for our low carbon generation service. In what felt like a novelty after a two-year hiatus of face-to-face forums, I was joined by my colleagues Dan Starman...

  • Low carbon generation

    Reform in haste, repent at leisure: squaring electricity market reform with investor confidence

    The review of electricity market arrangements (REMA) signalled by the energy security strategy could impact wholesale & balancing markets, & there could be a need to examine the capacity market rules & CFD contracts. It is too early to know what options will ultimately be adopted or when changes would...