This Department of Energy and Climate Change report sets out the nature and potential of the options that are - and may become - available to the UK energy market, in meeting three long-term challenges: ensuring affordable, secure and sustainable energy; bringing about the transition to a low-carbon Britain; and, achieving an international agreement at Copenhagen in December 2009. This is the second Energy Markets Outlook report and it seeks to facilitate and inform debate and decision making by market participants and other energy market stakeholders with a factual background to the development of the Government's approach to the above challenges. This publication also complements the original White Paper on the subject of energy, "Meeting the Energy Challenge: A White Paper on Energy (Cm. 7124)" (ISBN 9780101712422), which is available to purchase below. This title is divided into 10 chapters that include: Introduction; Executive Summary; Security of Supply in a Competitive Energy Market; Electricity; Gas; Coal; Oil; Nuclear Fuel; Renewable Energy; and, Carbon.