A revamped Contracts for Difference (CfD) model alongside an "optimised" Capacity Market have been deemed as a better way of progressively decarbonising the grid than big bang options to decouple low carbon and fossil fuel generation in the wholesale market. As revealed by Utility Week, the government has axed proposals for market decoupling, which would split the wholesale market in two and end the current situation where volatile gas prices effectively set the marginal price of electricity on the grid. The move has now been confirmed within the second consultation document of the Review of Electricity Market Arrangements (REMA).
Optimised Capacity Market and revamped CfDs backed to decarbonise grid
