UK electricity market reforms pass EU state aid hurdle

The landmark approval will allow the government’s contracts for difference and capacity market auction schemes to proceed. DECC has also set a £205m yearly budget for the first allocation of CfDs this autumn

The European Commission has granted the UK government state aid approval for its forthcoming ‘contracts for difference’ (CfD) subsidy regime and capacity market auctions – the twin pillars of electricity market reform (EMR).

The 23 July decision means a £15bn package of renewable energy subsidies has cleared its final hurdle and can proceed unhindered.

The commission judged both EMR proposals against

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