Monday, 20 December 2010

Chris Huhne unveils plans for reform of UK energy market

Low-carbon technologies such as renewable energy will be the "dominant" form
of energy generation by 2030 under government plans for the largest shake-up
of the UK energy sector since privatisation in the 1980s.

Announcing the proposals today, the energy and climate secretary, Chris
Huhne, said it would lead to a "seismic shift" towards cleaner energy.

The government says that more than £110bn of investment is needed in new
power stations and grid upgrades over the next decade - double the
investment over the last decade. Around a quarter of the UK's generating
capacity needs to be replaced by 2020, equivalent to around 20 large power

Huhne said the reforms aimed to boost investment in low-carbon energy and
allow the UK to meet its ambitious target of cutting emissions by 34% by

The changes will establish a minimum "floor" price for carbon and long-term
contracts that give investors a guaranteed price for providing energy - in
addition to setting a tax on fossil fuels. The government has not announced
what the floor price will be.

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