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Supporting Ofgem to Understand Demand Side of Renewable Energy

23 December 2012

Ofgem, the energy market regulator in the UK, was undertaking a full review of the energy market the UK, looking in particular at how policy was supporting the development of renewable energy generation and supply.

Previous analysis of policy on long-term contracts (in the form of Feed-in-Tariffs with Contracts for Difference) had principally focused on contractual structures between the government and generators that could help attract finance to renewable generation. Ofgem was keen to have a better understanding of the requirements on the demand side and specifically the benefits to business customers of long-term, renewable energy contracts.

Anthesis carried out independent, primary market research to investigate whether there was an appetite from business customers to engage directly with renewable generators in long-term contracts, and how government could support them. This initial research focused on interviewing a sample of large commercial businesses seen as progressive on climate change. The research was analyzed and reported back via a workshop with Ofgem and the Department for Energy and Climate Change. This involved challenging policy development using the new market insights. This initial research provides the foundation for the government to develop new policy mechanisms to promote renewable energy in the UK market.

 

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