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Fix the energy market
Draft

PJM-style Locational Marginal Pricing

A centrally optimised nodal market in which wholesale prices reflect marginal energy cost, transmission congestion and losses, supplemented by capacity and ancillary-service markets.

Solution section

Network

How network constraints, access and network value are represented.

Network

The transmission network is represented directly in central market optimisation.

Financial transmission rights provide tools for managing congestion-price exposure.

Distribution-network operation remains a separate layer.

The architecture therefore offers high transmission fidelity but does not collapse the entire transmission-and-distribution hierarchy into one market.