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Electricity Market Reform – Analysis of Policy Options

This study was undertaken by Cambridge Economic Policy Associates on behalf of DETI and the Northern Ireland Authority for Utility Regulation in response to the Department of Energy and Climate Change’s (DECC) consultation on Electricity Market Reform. The study looks at what were, at the time, proposals by DECC to replace the Renewables Obligation with a Premium Feed-In Tariff (PFIT) or a Feed-In Tariff with Contracts for Difference (FIT CfD).

The study concludes that the NIRO should close to new generation in 2017 and that a PFIT or a FIT CfD would work in Northern Ireland within the Single Electricity Market.

The Electricity Market Reform White Paper, published on 12 July 2011, confirms the Coalition Government’s intention to move to a FIT CfD. Further information on the Coalition Government’s reform proposals can be accessed here.

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