After the chaos in energy policy in 2013, government, investors, and the industry will likely be hoping for a more settled 2014. From the drawn out battle to design Electricity Market Reform (“the most significant intervention in the energy market since privatisation” according to every DECC minister since the election) to the upheaval following Ed Miliband’s price freeze pledge, last year was eventful, if not necessarily enlightening.
This year, while there is still plenty to do (Alan Whitehead MP describes well the numerous decisions still required to make EMR work), DECC may be able to turn its attention to other important matters. We have already discussed the Prime Minister’s emphasis on Carbon Capture and Storage as an area which has been neglected. Another, which Ed Davey highlighted in the Independent at the beginning of the year, is the prospect of much greater interconnection between the UK and its neighbours’ electricity grids. This is an area which Policy Exchange will be looking at in detail in the coming months…