Solution section
Vision
The organising idea: what problem this architecture is trying to solve and how it expects the electricity system to work.
Vision
Zonal pricing attempts to preserve the benefits of large interconnected wholesale markets while introducing stronger locational signals than a single national price.
The network is divided into bidding zones.
Participants inside a zone normally face the same wholesale price, while constrained transfer capability between zones can cause prices to separate.
The vision is therefore:
The central design question is whether a relatively small number of bidding zones can capture enough of the network's economic structure without creating the complexity of nodal settlement.