EnleashedEnleashed
Fix the energy market
Draft

Zonal Marginal Pricing

A wholesale architecture in which electricity is priced within geographic bidding zones, inter-zonal congestion affects market prices and residual internal congestion is managed through redispatch.

Solution section

Architecture

How the market, system operator, networks and participants fit together.

Architecture

A zonal market typically contains:

  • day-ahead and intraday markets;
  • bidding zones;
  • cross-zonal capacity calculation;
  • market coupling;
  • transmission-system operators;
  • balancing mechanisms;
  • redispatch;
  • ancillary services;
  • separate distribution-network operation.

The wholesale optimisation represents transfer constraints between zones but generally not every constraint within a zone.

That distinction is the defining architectural abstraction.