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.