Zonal Pricing, Volume Risk and the 2030 Clean Power Target with Methodology
Abstract:
New UKERC modelling is assessing the interactions between transmission build-rates and the possible introduction of zonal pricing in the British electricity market. It cautions that investors currently face high uncertainty, and considerable volume of sales risks, with a material impact on renewable energy auctions that are essential for meeting clean power 2030 targets. The analysis suggests that implementing zonal pricing before resolving transmission uncertainties risks exposing investors to unnecessary risks that could negate zonal pricing’s benefits. Initial findings were published in a Discussion Paper in March 2025. This Working Paper provides additional methodological detail.
Publication Year:
2025
Publisher:
UKERC
DOI:
No DOI minted
Author(s):
Blyth, W., Gross, R., Heptonstall, P., MacIver, C. and Jamieson, M.
Energy Categories
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Language:
English
File Type:
application/pdf
File Size:
1116000 B
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Further information:
N/A
Region:
United Kingdom
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