REMA – What you need to know…

The UK is in the process of reviewing its electricity market arrangements (REMA) in order to adapt to a changing energy landscape. Here's a quick rundown of what you need to know:

Challenges of the Current System

• The UK's electricity market was designed for a time when fossil fuels dominated the energy mix. These traditional sources are reliable, but also release greenhouse gases.
• Renewable energy sources like solar and wind power are becoming increasingly important in the fight against climate change. However, their output can fluctuate depending on weather conditions.
• The current market structure may not adequately incentivize investment in new, flexible power sources that can help balance out the variability of renewables.

Potential Solutions

• The government is exploring a variety of options to modernise the electricity market and ensure it can deliver clean, secure, and affordable energy. These include:

Desired Outcomes

• The ultimate goal of the REMA process is to create a market that achieves three key objectives:

Current Stage

• The Department for Energy Security and Net Zero has conducted two consultations.
• The first one gathered a wide range of views on potential reforms [2].
• The second consultation focused on a shortlist of more concrete options [1].

The Path Forward

• The government is currently reviewing the feedback received from the two consultations.
• They are expected to announce their decision on the specific reforms to be implemented in the coming months.
• This will be followed by a period of time to develop and implement the chosen reforms.

Further Resources

• You can find more details about the REMA process on the UK government website: https://assets.publishing.service.gov.uk/media/62fa281ee90e076cfe3649ed/review-electricity-market-arrangements.pdf. This includes consultation documents, technical research reports, and an options assessment.