The second mechanism is the introduction of a capacity market designed to address possible shortfalls in generation. Again, in principle a capacity market could work, but whether it does will depend on important details, such as whether a capacity market will actually be introduced, the format of the auction, how the amount of capacity needed will be decided, what should be the balance between supply and demand reduction measures and how the capacity payments will be funded. All that still needs to be worked out.
The third mechanism is the creation of an emissions performance standard that sits alongside the Government’s gas strategy. Gas will have a role in our future energy mix, especially as we move away from coal-fired power stations, but setting the emissions performance standard at 450g of carbon dioxide per kilowatt-hour, which allows unabated gas and planning to build as many as 40 new gas-fired power stations, would blow a hole through our carbon budgets. It would leave consumers vulnerable to price shocks and rising bills. It would put investment in clean energy and the jobs and opportunities that come with it at risk. It would leave us, as a country, exposed to a wide range of risks over which we would have little or no control. A second dash for gas is not the basis for a secure energy policy for the future.