The Committee today wrote to Ed Davey about DECC’s recent announcement on the Emissions Performance Standard (EPS) for gas-fired power generation. The EPS would allow unabated gas-fired generation from new plant through to 2045.
The letter states that approach set out in the announcement could be compatible with power sector decarbonisation required to meet carbon budgets, but also carries the risk that there will be too gas-fired generation instead of low carbon investment.
The Committee suggests that in order to mitigate this risk, it is important that a clear decarbonisation objective is set for the Electricity Market Reform (EMR), and that a process is put in place to ensure that this objective is achieved. They argue that this would help to resolve some of the uncertainties that currently undermine the investment climate for low-carbon power generation.