The UKDEA welcomes the Government’s aspirations published in the Energy Bill. The Bill provides clarification on Electricity Reform and low carbon generation, however, with the majority of the Bill’s attention focused on the electricity market, the heating sector has taken a back seat
The lack of a 2030 carbon target not being set out until 2016, has caused some concern.
Nonetheless, the Bill has provided reassurance through the Department’s commitment to promote investment in low-carbon sources of power.
The introduction of the Contracts for Difference (CfD), which will replace the Renewable Obligation after March 2017, intend to operate via a fixed price for electricity known as a strike price. During the transition period 2014-2017 project investors will be given a choice to either opt for RO or the CfD, this will bridge the gap between both schemes but industry will remain nervous about the CfD until more details are published.
The UKDEA will be responding to the call for evidence on the CfD supplier obligation that was also published Thursday 29 November 2012.
The doubts surrounding CfD are a primary concern of the UKDEA, who will actively engage with DECC to help alleviate and work towards resolving these ambiguities.