17 Dec 2010 10:12:04
Govt proposes energy market reforms
Energy reforms laid out by the government could see three-quarters of the UK's power coming from low-carbon sources by 2030, energy secretary Chris Huhne has claimed.
The Department of Energy and Climate Change and HM Treasury laid out a series of wide-ranging reforms for consultation yesterday (December 16th) aimed at boosting investment in renewable and clean energy sources.
Mr Huhne said more than £110 billion will need to be invested in power plants and the transmission network over the next decade – a challenge which the current market cannot support.
Much of what the proposals would entail – including a carbon floor price, long-term Feed-in Tariff style contracts for low carbon generation and an emissions performance standard – have previously been mentioned by Mr Huhne.
Commenting on the proposals, the energy secretary said: "Low carbon technologies must be given the chance to become the dominant component in our electricity mix."
The proposed reforms were said to be built on recommendations from the Committee on Climate Change, which recently suggested the UK should be looking to cut its emissions by 46 percent on today's levels by the year 2030.