Last month, Gov made surprise cut to plug-in car grant:
▶️ Based on falling price of EVs + increasing uptake which would blow budget
▶️ Cuts will always face resistance, even if justified
▶️ Could Gov design better policies, automatically less generous as costs fall? (yes)
2/4
Look at what's happen with subsidies for renewables:
▶️ Gov originally set defined level of support (FiT, ROC, RHI)
▶️ These (old-fashioned) policies have been replaced by competitive auctions (CfDs) that have cut costs and changed narrative around reducing support over time
3/4
Gov shouldn't start procuring Teslas and Nissan Leafs through auctions.
Instead, use a "Zero-Emission Vehicle mandate" to determine how much support is needed. Price of "ZEV credits" rises/falls depending on how quickly cost of EVs falls.
Number of public EV chargepoints needed is set to skyrocket, driven by the UK's ban on new petrol + diesel cars and vans by 2030 (and all hybrids by 2035).
Various forecasts show 300,000 - 500,000 chargepoints required by 2030, compared to ~35,000 today.
2/
During the 2020s, the UK must install public EV chargepoints 5 times faster than the current rate:
More detail on market coupling (trading on elec interconnectors). Aim to implement new arrangements on price coupling by April'22 (presumably through new market coupling platform)
Implies some loss of efficiency in short term.
2/
Looks like arrangements for gas trading will remain relatively similar to today, with UK industry retaining access to PRISMA platform for trading gas capacity.
Not much detail yet but looks like something on preserving efficient trading on interconnectors, preserving cooperation on nuclear power, and new mechanisms to cooperate on renewables, which is particularly important for offshore wind in the North Sea.
EU view on the consequences of Brexit for UK-EU energy trade.
UK outside of EU IEM, EU ETS and Euratom (as we knew)