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<p>DECC recognises the importance of considering the whole system impacts (both costs
and benefits) of different electricity technologies when formulating future government
policy, since it is a crucial element in delivering secure, clean and affordable energy
to consumers.</p><p> </p><p>In order to continue to improve its evidence base in this
area and inform future policy developments, DECC commissioned Frontier Economics to
undertake a project on the Whole System Impacts of Electricity Generation Technologies.</p><p>
</p><p>The core aim of the project was to set out a comprehensive framework to define
whole system impacts and their components and drivers, which can be applied to conventional,
low-carbon and renewable large- and small-scale technologies. Following peer review
by experts in the field of whole system impacts, DECC will publish the resulting methodology
report in due course, taking into account timing restrictions relating to purdah(s).</p><p>
</p><p>Subsequently, the theoretical framework will be used to further systematise
DECC’s modelling capability. Given the complex modelling involved and the need for
a rigorous quality assurance process to ensure the analysis is robust, this is currently
ongoing.</p><p> </p><p>Once the project is completed, DECC will be able to draw on
the improved evidence base developed through this project to contribute to informing
future electricity market policy development, including for CFDs. Given that the electricity
system continues to evolve, it is important that DECC reaches well-evidenced and robust
long-term solutions.</p>
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