Government Statement
Yesterday, the second consultation of the review of electricity market arrangements was launched. It aims to deliver a fully decarbonised electricity system by 2035. Since 2010, emissions from power have reduced by 65%, making the UK the first major economy to halve overall emissions. Renewable energy has grown significantly, increasing electricity supply from less than 7% in 2010 to nearly 50% today, leading to the removal of coal by October this year. To ensure security of supply as demand increases due to electrification of heat, transport and industry, we need up to 55 GW of short-duration flexibility and between 30-50 GW of long-duration flexibility. We aim for low-carbon capacity wherever possible while scaling up low-carbon technologies. Existing gas assets will be extended temporarily until new build gas capacity can replace expiring plants. The government is committed to £20 billion for carbon capture, usage and storage and hydrogen development. Unabated gas plants will run for limited hours annually, ensuring emissions align with legally binding carbon budgets.