UK Energy Market Reform Too Good To Be True? Probably.

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The UK’s Department for Energy and Climate Change Secretary Chris Huhne
announced the biggest energy reform “in decades” on Friday.

The reform package includes:

* a carbon price floor “increasing the cost of fossil fuel based
generation, and strengthening the carbon price for UK electricity
generators.” * two Feed in Tarrifs: standard and premium contracts under which “the
Government will agree to clear, long term contracts” which essentially
places a certainty on the price of renewable energy (and thus the benefit to
consumers and energy generators) which therefore makes investment
(theoretically) less risky. * an Emissions Performance Standard that ensures no new coal power
plants are built without carbon capture and storage technology in place * incentives for energy grid demand reduction measures and building
spare renewable generation capacity, dubbed ‘negawatt’ capacity by the
government. Negawatt capacity will be monitored by a Capacity Mechanism.

http://www.triplepundit.com/2010/12/uk-energy-market-reform-too-good/

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