The UK needs to overhaul its power industry and lean towards clean power generation to meet its climate change laws, according a Climate Change Commitee (CCC) report.
According to the CCC's advice to the UK Government on the 4th 'Carbon Budget', a new hybrid system for supplying power is needed where the government dictates the amount of clean power required.
The government should then allow private firms to bid to supply power under such a system, reports BBC News.
The existing free-market system to deliver new power supplies will not allow the country to fulfill its climate change targets and needs to change, says the report.
The committee suggests that development of clean power stations to replace output of the older coal and nuclear plants that are due to close will enable in de-carbonising the economy.
The committee chair Adair Turner said that they are recommending a stretching but realistic fourth carbon budget.