GB electricity market reform: a progress check on the Review of Electricity Market Arrangements (REMA)

The UK Government recently released a second consultation of its ongoing Review of Electricity Market Arrangements (REMA). The potential scope of this proposed reform is highly consequential and closely followed by the region’s power markets and participants. Sustained investment in renewables and the outcome of the ongoing energy transition in both the UK and EU will be experience a material impact from the results of REMA’s outcome. This Insight examines the potential GB market changes included and excluded in this second consultation round. Highlights of this Insight include: • The main challenges facing policymakers in this reform process • An overview of the key decisions still pending for REMA • The potential of the GB market transitioning from away from a single-price market • Considerations that could potentially support unabated gas generation