The UK aims to offer multi-year contracts for low-carbon flexible capacity in proposed reforms to its capacity market.
A consultation has been launched on the reforms, with proposals looking to incentivise investment in low carbon technologies.
Under newly published action plans, the UK Government aims to support the delivery of a decarbonised power system by 2035, without compromising security of supply.
This includes consulting on new contracts for low carbon technologies to incentivise their participation in Capacity Market auctions.
In addition, low carbon flexible capacity, such as smart ‘demand side response’ technologies and smaller-scale electricity storage, could be offered multi-year contracts to support the move towards delivering secure, clean and affordable British energy in the long term.
Energy and climate minister, Graham Stuart, said: “As we move towards cleaner and cheaper energy, it is essential that the UK provides secure and affordable energy for all.
“The plans set out today will deliver this reliable energy and ensure the scheme that sits at the heart of Britain’s energy security is fit for the future.”
RenewableUK’s Chief Executive Dan McGrail added: “It’s vital that we decarbonise our electricity system completely by 2035, so this consultation represents an important step forward in that process.
“We need to incentivise more investment in new low carbon flexibility in our modern energy system based on renewable technologies including wind, solar, tidal stream and green hydrogen. This will strengthen the UK’s energy security, enabling us to move closer towards energy independence in the years ahead.”