A new report published by management consultancy AFRY on Friday has urged for an "evolutionary rather than a revolutionary" redesign of the UK energy market.
The trade associations RenewableUK, Scottish Renewables and Solar Energy UK have warned that a radical shift in UK energy market design would increase the cost of electricity.
Changing to a zonal pricing market could bring down energy bills for consumers in Scotland substantially, but there are concerns about its impact on investment.
An independent review based on research by the University of Strathclyde has advised caution on Britain ‘rushing’ into a major wholesale electricity market reform based on locational marginal pricing (LMP).
A new study conducted by Energy Systems Catapult demonstrates that replacing the UK’s current national approach to wholesale power prices with a localised model “could be the foundation of a net zero system”.