Ofgem today made some far reaching and perhaps controversial recommendations to Government to encourage them to beat the looming energy crisis. With £200bn of investment in low carbon generation and gas storage needed to replace ageing plant and boost supply security, Ofgem said that the market incentives were just not in place to encourage this level of investment from the private sector compounded by uncertainty over carbon prices, credit and international supplies. Suggestions included reinstating the pre-privatisation concept of a central energy purchaser, setting a minimum carbon price, government tenders for renewable generation and suppliers bidding for electricity via auction rather than bilateral contracts with generators. Last week the Professor of Energy Policy at Oxford University did little to support the current regime and described the Energy National Policy Statements (NPS) as 'incoherent', 'amazingly complicated' and 'badly written' and that uncertainty could discourage investment. (NPS are supposed to inform the Infrastructure Planning Commission). He highlighted that the system doesn't add up with a current Renewable Obligation but non for nuclear or Carbon Capture and Storage; and a CCS Levy but no carbon tax in respect of nuclear or renewables. read more ...