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

Evidence

Operational evidence, literature, empirical experience and validation.

Evidence

Zonal pricing is extensively used in interconnected European markets.

Evidence should distinguish:

  • the performance of zonal market coupling;
  • the quality of particular bidding-zone definitions;
  • redispatch costs;
  • cross-border trading outcomes;
  • investment signals;
  • distributional consequences.

A successful zonal architecture in one geography does not establish that a particular set of zones is appropriate elsewhere.

Scientific Claims

The evidence programme is organised around a set of scientific claims. Each claim is supported by one or more experiments that test specific properties of the proposed market architecture.

No evidence has been added to Enleashed for this candidate yet.