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THE EVOLUTION OF

THE GAS MARKET

Gas will be vital as we transition to a net zero, sustainable 2019. The GMaP aims to promote
energy system. However, we need to manage the challenge discussion with industry and
of high levels of uncertainty about the industry’s future stakeholders on how gas market
frameworks may need to evolve
direction and pace of change. To continue to deliver safe, and adapt over the next decade
reliable gas supplies at the best value for consumers, the to support the energy transition
people at National Grid Gas Transmission explain how they and continue to deliver value for
are planning for the future in collaboration with industry, consumers. It outlines possible
industry transformations (‘likely’ and
decision-makers and stakeholders ‘potential’), and the areas of change
T term (2-10 years) to change the gas over the next year. The plan seeks to
we will be exploring with industry
he introduction of the UK’s
market, remove potential barriers and
ambitious 2050 net zero
drive proactive market development,
considering the possible future energy
target clearly demonstrates
help drive towards that low carbon
system developments.
future.
the desire and intent for rapid
It follows the original Future of Gas
decarbonisation across all
sectors of society. Natural gas and (FoG) programme, which National The GMaP emphasised how the
low carbon gases will be important in Grid published in March 2018. That approach to gas market development
facilitating the transition to a net zero programme gathered evidence, could evolve in four stages:
society, especially in those hard-to- discussed and tested the role of Explore: Understanding how the energy
decarbonise sectors, such as heating. gas in the UK’s transition to a system could transform over the 2-10
There is currently a huge amount low carbon economy and set in year time horizon, taking into account
of technological innovation in the gas motion the development of a the latest views on policy, technology
industry. However, the UK gas market – long-term Gas Markets Plan with and market development.
successfully developed into one of the stakeholders. Throughout 2019,
most liberal, competitive and liquid National Grid engaged a wide range Plan: Based on the current landscape,
markets in the world – now needs to of stakeholders, created two new identify ‘focus areas’ for further detailed
reform and change to help enable that enduring industry engagement analysis of market issues.
energy transition. platforms and published the first
National Grid, in partnership with version of the Gas Markets Plan. Act: In collaboration with an industry-
industry stakeholders, has developed The first annual publication of wide working group, prioritise and
a programme of work to look at gas Enabling the Gas Markets Plan 19/20 execute strategic projects to find
market change over the medium (GMaP) was published in December solutions to identified issues.

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