Four market principles ‘in line with making the most of renewables’

Published: 16 Nov 2018

By: NIC

Tagged:

Offshore wind turbines at sea

Greg Clark this week outlined four principles for the power sector – in line with recommendations in the UK’s first-ever National Infrastructure Assessment.

Speaking on Thursday, the Business Secretary offered the Government’s response to the Helm Review, highlighting the clear evidence that renewables such as wind and solar are getting cheaper and the increasing role they could play in delivering the UK’s electricity supply.

This was also a key factor behind the National Infrastructure Commission’s recommended target, that 50 per cent of the UK’s electricity come from renewable sources by 2030

The four principles are:

  • “Market principle” use mechanisms to take advantage of innovation and competition – which could include opening up Contract for Difference auctions to proven technologies, as per the Commission’s recommendation;
  • Insurance principle – intervening to provide insurance and preserve optionality – including driving up renewables as costs fall;
  • Agility principle: reaping the benefits of innovation and enabling a smart, flexible energy system regulation should be agile and responsive – both in line with the National Infrastructure Assessment and the Commission’s Smart Power report; and
  • No free-riding principle

Responding to the Business Secretary’s speech, a spokesman for the National Infrastructure Commission said:

“Our National Infrastructure Assessment highlighted the real potential there is for renewable technologies to play an ever-increasing role in the UK’s electricity supply – so we are pleased to see that the four principles set out by Greg Clark clearly in line with that objective.

“We look forward to seeing forthcoming measures including the offshore wind sector deal and plans for Contract for Difference auctions for next year. We also will watch with interest to see how the outlined approach can help us make the most of new and existing technologies to deliver low-carbon energy for the future.”

 

Share this article

<

Recent Articles

Prescot: Chancellor’s speech gives welcome “green light” to OxCam Arc infrastructure upgrades
Julia Prescot

Prescot: Chancellor’s speech gives welcome “green light” to OxCam Arc infrastructure upgrades

The Commission has welcomed the speech this morning by the Chancellor, the Rt Hon Rachel Reeves MP, setting out the government’s plans for growth. In it she set out new details on its plans to invest in and deliver new infrastructure projects in support of this goal, including outlining new plans for the development of...

29 Jan 2025 By
Government update on plans to tackle planning delays “welcome and timely”
A T-Pylon

Government update on plans to tackle planning delays “welcome and timely”

The government has published over the weekend (26 January) more details of its programme of planning reforms, as part of its Plan for Change to deliver long term growth. The update provides more details of the reforms in the Planning and Infrastructure Bill designed to speed up the approval of major infrastructure projects. A Planning...

27 Jan 2025 By
Ferry ‘cross the Mersey to see Liverpool’s infrastructure priorities firsthand
Aerial view over the city of Liverpool

Ferry ‘cross the Mersey to see Liverpool’s infrastructure priorities firsthand

Our Chair Sir John Armitt, Commissioner Michele Dix and members of the Commission’s secretariat spent Thursday (24 January) in Liverpool to hear from City Region Combined Authority officials and regional stakeholders about the region’s infrastructure priorities and growth ambitions – with one of the city’s famous ferries providing a vantage point from which to get...

24 Jan 2025 By

Evidence_Icon_Turquoise Created with Sketch.

Explore data used in the Commission's research, and gain insights from across UK infrastructure