Independent and technology-agnostic markets, policy & regulatory thought leadership tackling the hardest challenges on the way to Net Zero

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Designing policies and regulations to create a Net Zero energy market

Energy Systems Catapult offers energy policy, regulatory, and market design expertise that combines deep understanding of technology, economics, and policy, informed by cutting-edge modelling and evidence-based analysis.

Understanding the reform agenda requires deep knowledge of existing policy and regulatory frameworks, the processes of government and regulators, and the technology and economics of low carbon energy options for homes and businesses.

We work with Government, regulators, SMEs, innovators, and academia to develop practical, solution-focused market design, policy, and regulatory options.

Policy Expertise

  • Policy interpretation of energy system modelling, engineering, and infrastructure transitions 
  • Economy-wide span of carbon policy knowledge 
  • Electricity market design and policy analysis 
  • Heat decarbonisation policy, local energy planning and social policy dimensions of energy. 

Regulatory Expertise

  • Deep understanding of regulatory challenges raised by low carbon technical and social change 
  • Incentive design and low carbon regulatory mechanisms 
  • Deep understanding of economic regulation of utilities 
  • Network price controls and incentives. 

Economic Appraisal

  • Substantial experience of economic policy appraisal and impact assessment 
  • Tariff design and analysis, network charging policy, and regulatory economics 
  • Environmental and welfare economics perspectives and analysis, including externality valuation. 

Impactful Engagement

  • Engagement on policy and regulatory issues with Government and regulatory authorities 
  • Deep appreciation of the institutional environment for policy decision making. 

What we offer

Energy Systems Catapult provides evidence, insights and thought leadership for policy, regulation and market development for Net Zero.

Policy Positions & Consultations

Unique whole systems evidence and insights in response to Government consultations and calls for evidence, to help policy-makers transform the UK energy system to achieve Net Zero targets.

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Case Studies

Rethinking Electricity Markets

Rethinking Electricity Markets is an Energy Systems Catapult programme that began in 2019 to develop proposals to reform electricity markets so that they best enable innovative, efficient, whole energy system decarbonisation.

The right electricity market reforms and market mechanisms will bring forward innovation and investment in a more efficient mix of low carbon generation, network enhancements and flexibility.

The six key reforms from Rethinking Electricity Markets are:

  1. Make electricity markets work more accurately in time and space by introducing Locational Pricing.
  2. Phase out centralised contracting (CfDs & CM) by mid 2020s and replace with outcome-based policy mandates.
  3. Evolve policy to support financial market development and contracting for investment.
  4. Redesign innovation and early deployment support for immature technologies to avoid distorting markets.
  5. Overhaul governance and role definitions for industry codes, system operation, data and digital interoperability.
  6. Align electricity sector strategy, regulation and outcome-based policy mandates with the carbon budget cycle.

In July 2022, the UK Government launched a transformational review into Britain’s electricity market design, seeking views on a wide range of options to address the combined challenges of responding to higher global energy costs, the need to further boost energy security and move the UK to a cleaner energy system.

What is Locational Pricing? Watch the video:

How to work with us

We are not-for-profit, independent and technology-agnostic – building a trusted track record of delivering thought leadership, collaborative R&D and commercial commissions – so are uniquely placed to take on the challenges that others cannot tackle.

Collaborate with us: We work with partners from the public and private sectors to secure funding and collectively deliver the innovation projects and thought leadership that tackle the hardest challenges in the way to Net Zero.

Commission us: We offer independent support, evidence and insights – with technical, commercial and policy expertise – to identify and deliver Net Zero innovation priorities. Then actively support clients to develop actionable plans for implementation.

Contact us

If you are interested in working with us, contact us by completing the form and one of the team will be in touch.

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Find out more about how Energy Systems Catapult can help you and your teams