b'Member News March 2023 19Solving societal challengesSwitching overwhy the electricity market needs changeThe UK government has launched a consultation as part of its Review of Electricity Market Arrangements (REMA). This is a comprehensive re-examination of the way electrical power is generated, distributed, and paid for across the country. The IET Energy Panel is responding to theThe market is now under serious pressure. The consultation. It says the creation of a market continuing need to decarbonise the economy, for the right types/mix of flexibility services coupled with massive rises in the price of natural must be a primary outcome. Flexibility will be gas and growing geopolitical risks are only a fewas prominent as low carbon capacity in assuring of the issues it faces.a secure, low cost, low carbon energy system.More fundamentally, says Knight, as we move The Energy Panel highlighted the need to towards a net zero electricity system the market ensure security of supply and improve resiliencewill become less fit for purpose.in response to issues such as societys growing reliance on electricity, the increasingly unpredictable climate, and its impact on the system and how it is used. The nice thing about markets is anybody who has a good idea should be able Born out of the surge of privatisations during to compete in the market, however the Thatcher years, the electricity market wasthe downside is that its nobodys never meant to require government intervention. job to deliver net zero. So, the only Matthew Knight BEng CEng MIET, a member of theway you get there is by sending IET Energy Panel, explains, Since 1990, when thesignals to the market and hoping it UK privatised and deregulated its energy industry, we have managed the whole electricity systemwill go that way. Like trying to steer through a market. So, theres no person or companya sailing boat by adjusting the wind.responsible for making sure that we have enough generation to meet our needs. I think its almost an impossibility to It was a simple but powerful idea that we design a perfect market.So as an would set up a market and the market wouldengineer, I conclude lets have the manage everything, we would never need any moresimplest possible market that does energy policy. 80% of what we need and intervene Dont forget, the IETs Energy Panel has moreto make the other 20% happen.work on all things energy and energy policyon the IET website theiet.org/energyMr Knight is enthusiastic about REMA, saying, This wasnt the end of government involvement overall, REMA is a positive process and its being in UK energy, and three parliamentary Energy done very well. It has been distracted by the short-Acts later, the market needs resetting. term problems, but if we can manage those, I think we can come up with a good positive market that will run the system for the next decade while we were trying to get to net zero electricity systems by 2035.Learn more about policy submissions and how you can contribute:theiet.org/impact-society/government-policy-and-submissions'