System Costs of Electricity

Limiting the rise of global temperature to less than 2°C represents an enormous challenge for the whole electricity sector. Decarbonising the electricity sector in a cost-effective manner while maintaining security of supply requires the rapid deployment of all available low-carbon technologies. System costs are not properly recognised by current market structures and are currently borne by the overall electricity system in a manner that makes it difficult – if not impossible – to make wellinformed decisions and investment.