Unlocking investment in low-carbon electricity

Energy market reform was much needed but some elements are a cause for concern for investors. Last-minute policy changes have already dented confidence.

Bryony Worthington.In December the government passed its latest Energy Act, which seeks to unlock investment in low-carbon electricity. The UK’s energy policy had to evolve significantly during its passage as realisation set in that a significant intervention to support low- carbon power (via ‘contracts for difference’) would require other interventions to keep the lights on (via the capacity mechanism).

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