Electricity market reform

This POSTnote analyses the present wholesale electricity market and proposals for reform of electricity market arrangements to support decarbonisation of the system by 2035.

Electricity market reform

  • POSTnote

    Longer duration energy storage

    The UK’s energy system relies on the storage of fossil fuels to manage variations in supply and demand over varying timescales. As these are replaced to meet the net zero emissions target, new types of low-carbon, longer duration energy storage will be needed to provide secure energy supplies. This POSTnote examines different low-carbon storage technologies, their role in addressing future system needs, issues relating to scaling-up the technologies and Government strategy.

  • POSTnote

    Nuclear energy in the UK

    Nuclear electricity is a predictable and low-carbon part of the UK energy mix, currently providing 15% of the UK’s electricity. However, most existing nuclear power stations are set to close by 2030. The Government has an ambition to increase production of nuclear energy. One new nuclear power station is under construction (Hinkley Point C) and another (Sizewell C) has received planning consent. This POSTnote reviews the evidence surrounding the construction of new nuclear power stations and the ways in which nuclear might contribute to emission reduction targets.

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    Energy security

    Energy security concerns have risen over the last year. This has been brought about by high international gas and electricity prices, and the possibility of gas shortages during winter 2022, driven largely as a consequence of Russia’s war in Ukraine. This POSTnote examines the risks to the UK’s energy security, current practices for ensuring energy security, and measures that might be taken to enhance energy security as the UK transitions towards a net zero economy.

  • POSTnote

    Green steel

    Greenhouse gas (GHG) emissions from the iron and steel industry make up 14% of industrial emissions in the UK. Decarbonisation of the steel industry is needed if the UK is to meet its target of net zero GHG emissions by 2050. This POSTnote outlines current steelmaking processes in the UK, the technologies and measures that can be used to reduce CO2 emissions, and the supporting infrastructure and policies that could enable a ‘green steel’ industry in the UK.

  • POSTbrief

    Geothermal energy

    Geothermal energy is a source of low-carbon, homegrown, renewable energy. It is available throughout the UK and can provide heat or power all year long independent of weather conditions. It currently delivers less than 0.3% of the UK’s annual heat demand, using only a fraction of the estimated available geothermal heat resource. There is the potential to increase this proportion significantly, but this will require long-term government support to develop a route to market and overcome high upfront capital costs and geological development risks.

  • POSTnote

    International shipping and emissions

    International shipping is widely regarded as a ‘difficult-to-decarbonise’ sector. However, having been included in the UK Government’s sixth carbon budget, rapid reductions in emissions from this sector will be required to contribute to UK’s goal of net zero greenhouse gas emissions by 2050. This POSTnote examines the options for reducing emissions from international shipping activities and outlines the regulatory landscape of the sector.