In Marginal Call, we assessed options for the redesign of Great Britain’s wholesale power market.
We highlighted that the need to deliver long-term price stability for consumers must be balanced with the requirement to ensure Britain can deliver a carbon-free power market by 2035, to remain on track for economy-wide net zero by 2050 emissions targets.
Key to delivering that 2035 goal is maintaining strong investment incentives for low-carbon infrastructure developers, as well as sufficient pricing signals for flexibility providers whose services will be essential in ensuring power system stability in a renewables-dominant grid.
Completing the transition to a clean and stable electricity sector stretches beyond these priorities still, however. Power grid infrastructure build, and upgrades, need to accompany accelerated renewable energy capacity deployment to ensure that the network is future-ready to shift clean electricity supplies sufficiently to where they are required.