Abstract

Electricity plays a part in almost every aspect of modern life and is vital to our economic and social well-being. Since privatisation in the 1980s, the UK has relied on a competitive market system with independent regulation to deliver reliable electricity. However, the UK energy infrastructure is facing unprecedented challenges over the coming decades. It will lose 20GW of generation as old and highly polluting plants shut their doors. Recent figures suggest that by the end of the decade, the capacity margins will be so tight that the likelihood of costly blackouts will increase. A further twist comes from the introduction of more intermittent generation in the form of wind energy that will need to be balanced against inflexible base-load generation from nuclear power giving flexibility challenges. Action is required now to keep the lights on and the UK government has launched a white paper setting out its commitment to transform the electricity system.

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