Electricity Market Reform is a government programme aimed at attracting the investment needed to replace the UK’s ageing energy infrastructure and to decarbonise the UK’s electricity mix. This reform is the biggest change in the UK energy market since the privatisation in 1990.
The Electricity Market Reform aims to achieve its ambitions through two schemes:
- Contracts for Difference
- Capacity Market
The Capacity Market is a mechanism for securing the electricity supply in the UK from reliable sources that can deliver energy when needed to provide backup for sources that are more intermittent like renewable energy sources.