Call for evidence by the System Operator

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

National Grid Electricity Transmission (National Grid) has launched a call for evidence to inform the first Electricity Market Reform (EMR) …

National Grid Electricity Transmission (National Grid) has launched a call for evidence to inform the first Electricity Market Reform (EMR) delivery plan.

On Tuesday 9th October 2012, National Grid published a call for evidence which will inform the analysis that the System Operator (National Grid) will provide to Government in 2013 to inform the first electricity market reform (EMR) delivery plan. The documents published alongside the draft Energy Bill in May indicated that in autumn 2012 National Grid would start to carry out analysis for the EMR delivery plan, including a call for evidence for Contracts for Difference, which is one of the EMR mechanisms.

National Grid is launching this call for evidence to inform the development of strike prices for renewables for Contracts for Difference (CfD). The call for evidence seeks evidence in the following areas:

  • To review technology cost and deployment potential assumptions and ensure that the most up to date data for the projects commissioning towards the end of the Renewables Obligation (due to close to new projects on 1st April 2017) and beyond are taken into account, and
  • To understand the differences in investment decisions under the Renewables Obligation and Contracts For Difference, and how choices will be made between the two mechanisms

The call for evidence, which can be accessed at National Grid EMR webpage, will run for eight weeks and close on Monday 3rd December 2012.

National Grid will use the data received in the call for evidence, with existing data used in the recent Renewables Obligation Banding Review, to inform the analysis. That analysis will be provided to Government in spring next year and inform the draft EMR delivery plan which will be published by DECC for consultation in the middle of next year. DECC will set out further detail alongside the Energy Bill introduction later this year on the scope of the analysis and the process National Grid will go through.

DECC recently published a Memorandum of Understanding (MoU) and a legally binding agreement dealing with the Management of Information (“Confidentiality Agreement”) which has been signed by DECC and National Grid.

Notes for editors:

In May the Government published the draft Energy Bill and set out further detail on its proposals for Electricity Market Reform (EMR), including a delivery role for the System Operator, National Grid Electricity Transmission (National Grid). This role includes the provision of analysis to inform the Government’s decisions on CfD strike prices for renewables.