Meeting the energy and climate challenge to 2050 – the UK response

Speaker: Mr. Jonathan Mills, Director of Electricity Market Reform for the Department of Energy and Climate Change of the UK Government

A market model is needed to drive investment  to decarbonise the energy sector in the most efficient and effective way – at an affordable cost, protecting the competitiveness of Europe and whilst ensuring security of supply. The European Commission has estimated that between 2010 and 2020, €1 trillion of investment is needed in the energy sector across Europe to deliver the required decarbonisation trajectory. However, at this very moment, Europe is facing an investment hiatus. Moreover, decisions made today in the electricity sector are ever more important, as the upcoming investment cycle involves committing to facilities that will be in operation for a generation, but the transition to a low-carbon energy mix cannot wait.

In the UK, the UK Government estimates that £110 billion of investment will be needed to deliver secure, reliable, diverse and sustainable low-carbon power for the UK. The UK government’s view is that the current market arrangements will not deliver this investment. Therefore, the Electricity Market Reform has been designed to address the investment challenge.

Mr. Jonathan Mills, Director of Electricity Market Reform for the Department of Energy and Climate Change, will provide us with an insight into the approach being undertaken in the UK.