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Date: September 2021 | Client: Energy Systems Catapult | Sector: Energy | Expertise: Decarbonisation & sector integration

Locational energy pricing in the GB power market

CEPA, working with energy networks specialists TNEI, has produced new research for Energy Systems Catapult (ESC) on the role of locational energy prices in facilitating the decarbonisation of Britain’s energy system. Our report for ESC tests the limits of three different options for revealing the locational value of energy:

  • Network use-of-system tariffs
  • Zonal wholesale markets
  • Nodal wholesale markets

We identify the strengths and weaknesses of each approach, and highlight the issues that would need to be addressed if each approach were to be introduced in GB.

Our report is part of a growing portfolio of work in this area, which includes assessing Ofgem’s proposals under the Access and Forward-looking Charges Significant Code Review, advising on access and charging arrangements to optimise investment in transmission and generation capacity in Australia, and reviewing international approaches to cost recovery.

To find out more, please contact our experts listed below.

David Newbery
Non-Executive Director United Kingdom
Ella Pybus
Principal Australia