PS22262 Policy Consultancy for Incremental Reform to Wholesale Electricity Markets

***** THIS IS AN AWARD NOTICE, NOT A CALL FOR COMPETITION ***** This procurement is being concluded following a mini competition under the Crown Commercial Services Research and Insights DPS - RM6126 Brief Description of Requirement Decarbonising the power system is essential for meeting ambitious GB carbon targets.

We have made great progress to date, reducing greenhouse gas emissions by over 70% since 1990; but meeting the Government's commitment to deliver a fully decarbonised power sector by 2035 (subject to security of supply) will require an even faster scale-up of low carbon technologies.

Our success over the last ten years has been driven in large part by the changes introduced as part of Electricity Market Reform in 2013.

But the challenges of this next phase of the transition, as well as the opportunities, will be different.

Our underlying wholesale market arrangements had largely been designed for a fossil fuelbased electricity system.

We now need a set of market arrangements - both the underlying structure and the policies which support and complement that structure - which can deliver a cost-effective transition to the future larger, cleaner and more decentralised electricity system we will need, as well as ensuring a smooth transition away from our remaining fossil fuel generation capacity.

This is why we have launched REMA; to help us unlock the full potential of low carbon technologies for consumers, to take us all the way to net zero, reduce our reliance on fossil fuels, and maintain security of supply in an uncertain geopolitical context.