Redpoint Energy, the specialist energy consultancy, has been engaged by the Energy regulator, Ofgem (Office of the Gas and Electricity Markets) who is working in conjunction with DECC (Department of Energy and Climate Change) to assess whether changes are needed to the offshore transmission regime to enable the coordinated development of networks.
Redpoint is providing economic analysis and policy development support, as well as an independent assessment of evidence provided by industry. Ofgem and DECC have also established the Offshore Transmission Coordination Group to provide support as part of this process. Redpoint will be contributing to and facilitating the regulatory, commercial and incentive discussions within the Group.
“The current system works well for low levels of offshore wind, as evidenced by the significant new investment that the transitional OFTO regime has attracted; but the UK will be bringing more and more offshore generation into the energy mix over the coming years as the Government strives to meet 2020 renewable energy and 2050 carbon reduction targets,” commented Ilesh Patel, Director, Redpoint Energy.
“This huge increase in generation means that additional measures might be required to deliver co-ordinated networks through the competitive offshore transmission regime. We need to investigate what the potential issues are, what policy options are available, and how the commercial framework, including the risk and reward balance, may need to change. This also takes in the incentives framework required to ensure new investment continues to flow to the offshore generation and transmission sector,” adds Patel.
The appointment of Redpoint Energy follows a number of significant engagements undertaken recently, including helping DECC analyse the policy options for Electricity Market Reform, for National Grid Electricity Transmission (NGET) and Ofgem in relation to system operator incentives, and helping new transmission networks and interconnectors overcome regulatory and commercial barriers across Europe, thus facilitating the transition to low carbon economies whilst ensuring the security and affordability of energy supplies.
About Redpoint Energy
Redpoint Energy is a specialist energy consultancy, advising clients on investments, strategy and regulation across Europe’s liberalised power, gas and carbon markets. Since its formation in October 2004, Redpoint’s clients have included some of Europe’s largest energy companies and financial organisations, as well as government institutions, notably Ofgem, DECC, the Committee on Climate Change, the Energy Technologies Institute, EDF Energy, Centrica, ESB, GE, Statoil, Vattenfall, and Shell.
The firm specialises in energy market analytics, risk strategies, and energy policy and regulation, and has provided advice and analysis on areas including electricity trading arrangements, generation asset investment, risk measurement, retail pricing strategies and carbon market price formation.
For more information: www.redpointenergy.com
Aspectus PR, for Redpoint Energy
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