UK Government

Department of Energy and Climate Change: Statement on Ofgem project discovery

Press Release   •   Feb 03, 2010 10:44 GMT

Energy and Climate Change Secretary Ed Miliband said:

"The Government is confident that Britain will meet its security of supply needs in the years ahead. Our Low Carbon Transition Plan has put in place a programme of action to deliver secure and increasingly low carbon energy supplies in the medium term through to 2020.

"However, for the longer term, Britain will need a more interventionist energy policy. The scale and upfront nature of the low carbon investment needed is likely to require significant reform of our market arrangements to deliver security of supply in the most affordable way.

"That is why my Department began work last summer to plot out the pathways to a decarbonised, secure energy mix in 2050 and the options for reforming the market to deliver it.  Ofgem’s report will contribute to the proposals we will make at the time of the Budget.”

Notes for Editors

1. 2050 Roadmap

The Department of Energy and Climate Change is undertaking a 2050 Roadmap project to map out the routes to decarbonising and securing our energy supplies by 2050. Chapter 8 of the Low Carbon Transition Plan (July 2009) set out the parameters for the work:

2. Energy Market Assessment

The Government’s Energy Market Assessment is examining the market reforms that will be needed to deliver on our 2050 goals.  The Pre Budget Report (December 2009) outlined the project:

"As well as strategies to help develop and deploy particular low carbon technologies, Government is committed to ensuring the energy market and policy framework supports private sector investment. Building on the Low Carbon Transition Plan to 2020, Government committed to publish decarbonisation pathways to 2050, consistent with secure, low carbon energy. This will require significant private sector investment in low carbon energy infrastructure. With this large investment challenge, the Government – working with Ofgem – needs to ensure that consumers get a fair deal.

"As part of this work, the Department of Energy and Climate Change and HM Treasury will take forward work to report on how to ensure the electricity market framework can most effectively deliver a fair deal for the consumer and the low carbon investment we need in the long term. The work will take account of the available analysis and evidence, such as Ofgem’s Project Discovery work and the advice of the Committee on Climate Change. This work will report back with initial findings at Budget 2010.”

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