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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

Scarcity & Reliability

How scarcity, reliability and constrained access are managed.

Scarcity & Reliability

Scarcity can appear through high market prices when supply becomes scarce.

Cross-zonal transmission scarcity can also separate prices between zones.

Reliability arrangements vary by jurisdiction and may include:

  • energy-market scarcity revenues;
  • capacity mechanisms;
  • strategic reserves;
  • ancillary services.

There is no standard zonal-market mechanism that carries historical scarcity exposure forward as an explicit fairness state.