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.
A cost benefit assessment of locational pricing systems in Britain has found that implementing a nodal pricing system could deliver up to £51 billion in consumer savings, but benefits face regional disparities.
“I think we have created skewed distribution,” said Domenico Tripodi, partner at the investment company, AIP Management, speaking at the Renewable Energy Revenues Summit 2023 (RER).
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.
