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Faculty of Economics

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Newbery, D. M.

Reforming Competitive Electricity Markets to Meet Environmental Targets

CWPE1154

Abstract: The UK and other EU countries are concerned to deliver secure, sustainable and affordable electricity, to meet challenging targets for decarbonisation and renewable energy. The UK Government has consulted and concluded that the present electricity market arrangements will not deliver all three goals, and has proposed a major Electricity Market Reform (EMR). This article describes the reasons for, and the nature of, the EMR, pointing to the need for further market and institutional reforms.

Keywords: Electricity market reform, environment, low-carbon generation

JEL Codes: Q48 Q42 L94

Author links: David Newbery  

PDF: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1154.pdf

EPRG Paper Link: 1126

Open Access Link: https://doi.org/10.17863/CAM.1152