Energy markets are failing: even if the cost of wind or other renewable sources attains ‘grid parity’, and even if there is a significant carbon price, the market will not provide a secure basis for renewables.

So said Malcolm Keay, senior research fellow at the Oxford Institute for Energy Studies, in a new paper, Energy markets are not fit for purpose and must be redesigned.

Keay said current market structures:

•    Provide no useful signals for operation (and benefits for flexibility);