New research commissioned by the international law firm Freshfields Bruckhaus Deringer has revealed that a large number of top executives and main investors within the UK electricity industry believe that government’s proposed Electricity Market Reforms (EMR) will not help the UK meet its 2020 decarbonsiation target.
The results of the survey, titled Electricity Market Reform: Call For Clarity, show that 77% of those surveyed felt that EMR will not enable the 2020 decarbonisation targets to be met. In contrast, only 18% felt that it would.
A large majority of respondents (64%) also indicated that they think the UK will fall short of its 2020 private sector investment target of £110 billion. The majority felt that the target was ‘out of reach’, with a number questioning whether it would even be possible to spend that amount of money by then.
Of all sectors supported by EMR, offshore wind generation was seen to be the sector given the biggest boost by the outlined proposals. Nearly 80% of those surveyed saw the investment case for offshore wind boosted compared to 54% for gas-fired generation and 41% for nuclear.