Britain’s Energy Bill Becomes Law
Britain’s Energy Bill, which includes a new support mechanism for renewable energy and nuclear plants, was approved by the Queen on Wednesday, meaning it is now law.
The approval gives investors in Britain’s energy infrastructure certainty that proposed changes to the energy market will be in place for decades to come.
The Electricity Market Reform package as part of the Bill will reward renewable and nuclear energy with guaranteed electricity prices over a set period to encourage power plant developers to opt for low-carbon forms of energy.
The reform was designed in a bid to help Britain meet its legally-binding targets to cut carbon emissions, and will also create a backup capacity market where standby power plants will be able to participate in annual auctions to receive payments for generating additional power when needed.
Many of the reform proposals, including Britain’s support for nuclear power and the capacity mechanism, need to gain state aid approval from the European Commission.