'UK power market reforms needed by end 2011'

02.11.10

Britain risks missing its renewable energy targets unless electricity market reforms are decided on by the end of 2011, warns UK energy network operator National Grid.

Britain's target is to replace old coal power plants and nuclear reactors with new nuclear, offshore wind farms and grid upgrades. To do this, it must unlock the necessary funds through energy market reforms.

Britain also aims to cut emissions by 34% by 2020 from 1990 levels, and 80% by 2050.

"If the UK doesn't get some clarity around incentives by the second half of next year, we really have some risk around offshore wind and nuclear builds", said Chief Executive Steve Holliday.

"It won't derail (the government's renewable targets) but unless we get the coordination between offshore and onshore grid connection right...it just means the investments will be higher than they need to be."

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