November 8, 2023 [Energy Live News]- Despite ambitious decarbonisation targets, issues related to energy transition governance, regulations and flexibility markets hinder progress, according to a new report.
Despite having ambitious decarbonisation targets, the UK faces significant challenges in achieving them.
That’s according to the Energy Transition Readiness Index (ETRI) 2023, which suggests energy transition governance, regulatory issues and flexibility market concerns contribute to investment uncertainty and impede renewable energy deployment in the UK.
The report emphasises the need for clear governance and regulatory stability to attract investors and accelerate the energy transition.
The UK ranks ahead of several European countries in the ETRI but lags in terms of flexibility market development, crucial for balancing high-renewable grids.
The ETRI 2023, produced by the Association for Renewable Energy and Clean Technology (REA) and sponsored by Eaton and Foresight Group, assesses electricity markets in 14 European countries.
While the UK has improved its overall ranking, it faces challenges in providing fair, transparent and accessible flexibility markets.
Flexibility is vital for balancing renewable grids as coal and gas generation declines.
However, the UK’s progress in flexibility markets is not comprehensive or fast enough, according to the report.
Survey respondents suggested that introducing measures similar to the US Inflation Reduction Act would accelerate energy transition progress in the UK.
The REA stresses the severe financial consequences of slowing the energy transition.
ETRI 2023 recommends creating open markets for low carbon flexibility assets, prioritising flexibility market reforms and addressing technology and process barriers.
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