Member working group

Introduction to Zonal Pricing Webinar

Price

Free

Date
May 6, 2025
Share
Where
Online
Time
10.00-12:00
Member working group

Introduction to Zonal Pricing Webinar

Price

Free

Date
May 6, 2025
Copy URL link
Where
Online
Time
10.00-12:00
Member working group

Introduction to Zonal Pricing Webinar

Price

Free

Date
May 6, 2025
Share
Where
Online
Time
10.00-12:00
SPEAKERS

Johnny Gowdy

Director
Regen

Simon Gill

Energy consultant
The Energy Landscape

Gareth Miller

Stephen Woodhouse

Director
Afry

Kate Mulvany

Principal Consultant - Strategy
Cornwall Insight

Merlin Hyman OBE

Chief executive
Regen

Maxine Frerk

Independent director
SSEN Distribution
  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

What could a GB zonal pricing system look like and what impact could it have?

The DESNZ Review of Electricity Market Arrangements is considering the case for converting the GB electricity market into one based on zonal pricing, leading to extensive debate and strong views in the industry.  

The government is expected to make a decision whether to pursue zonal pricing before summer 2025 and the next CfD allocation round (AR7).  

However, the information as to how a GB zonal market might work in practice is limited. This webinar aims to bring together leading experts to explain the basics of zonal pricing and shed light on the options. We will aim to get beyond the current ‘for and against’ debate and consider issues such as:  

  • What are the basics of zonal market design and how does this differ from our current market?
  • How many zones could there be, what basis would they be set on and how often might zones change?  
  • What would zonal mean for existing and future Power Purchase Agreements  
  • How would trading arrangements work including the day ahead, intraday and balancing arrangements.
  • Implications for investment and how might risk be mitigated?
  • The impacts on consumers and how ‘losers’ might be shielded  

Join us

Members get discounted rates on all our events and free attendance at our working groups, along with a range of other benefits.

The ESN Winter Conference served as a platform for key industry players and policymakers to come together and engage in debate over what’s needed to attract the billions of investments required for this crucial asset class – from supportive policy and regulatory frameworks, shifting revenue strategies, and evolving business models.

We now have over 3.3 GW and 4.1 GWh of battery storage operational and GWs in construction. Grid-scale electricity storage is well-established as key to a zero-carbon energy system, a testament to the success of our 85+ Electricity Storage Network members.

We heard directly from ESN members and key decision-makers – from DESNZ, Ofgem and National Grid ESO – on the latest changes across a range of topics critical to the storage sector, including the Balancing Mechanism, grid connections, fire safety, and long-duration energy storage policy development. This was also an opportunity to learn about the ESN’s work to ensure policy, markets and regulation are geared to enable the storage sector to flourish and grow at the pace and scale required.

This replaces the Electricity Storage Network (ESN) Annual Conference usually held every January, established as one of the most popular industry events in the calendar leading the debate on the future of grid scale electricity storage.

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

This annual event is a platform for key industry players and policymakers to gather and debate what’s needed to attract the billions of pounds of investment required for this crucial asset class – from supportive policy and regulatory frameworks to shifting revenue strategies and evolving business models.

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

What could a GB zonal pricing system look like and what impact could it have?

The DESNZ Review of Electricity Market Arrangements is considering the case for converting the GB electricity market into one based on zonal pricing, leading to extensive debate and strong views in the industry.  

The government is expected to make a decision whether to pursue zonal pricing before summer 2025 and the next CfD allocation round (AR7).  

However, the information as to how a GB zonal market might work in practice is limited. This webinar aims to bring together leading experts to explain the basics of zonal pricing and shed light on the options. We will aim to get beyond the current ‘for and against’ debate and consider issues such as:  

  • What are the basics of zonal market design and how does this differ from our current market?
  • How many zones could there be, what basis would they be set on and how often might zones change?  
  • What would zonal mean for existing and future Power Purchase Agreements  
  • How would trading arrangements work including the day ahead, intraday and balancing arrangements.
  • Implications for investment and how might risk be mitigated?
  • The impacts on consumers and how ‘losers’ might be shielded  

The Electricity Storage Network, managed by Regen, is an industry group and voice for grid-scale electricity storage in GB

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

  • Agenda

    10:00

    Introduction and Scene Setting

    Chair: Merlin Hyman

    10:05

    What is Zonal Pricing

    1. Zonal Basics – the theory
    1. Key differences with our current market
    1. Zones and price setting
    1. Key changes for generation and demand

    10:15

    Case for change  

    1. Why is zonal being considered – constraint costs and redispatch challenges
    1. Elements of the benefit case  
    • Wholesale prices
    • System/operational savings – ICs and storage
    • Potential value transfers from generators to consumers and others
    1. Summary of modelling outcomes – FTI, Afry, LCP Delta
    1. Uncertainties and caveats

    10:25

    Discussion 1  

    Views on the case for change and potential benefits.

    Q&A

    10:40

    Proposed Zonal Market Design and Trading Arrangements

    1. Basics of the zonal design proposed “nordic model”
    1. Elements of the market – bilateral trading, day ahead and intra-day
    1. Implications for PPAs and forward trading
    1. Issues outstanding – Hedging and intraday trading

    10:50

    Implications for investment and mitigation measures

    1. What are the impacts for generation (and storage)
    1. Why might zonal increase investment risk?
    1. What mitigation measures have been proposed/expected
    1. Implications for investment, CfD prices and cost of capital

    11:00

    Discussion 2  

    Views on the investor perspective and how they might respond  

    Q&A

    11:15

    Consumer benefits and impacts  

    1. How might consumers benefit
    1. Encouraging demand response and flexibility
    1. Distribution of benefits between consumers – zonal variance and consumer groups – issues re fairness
    1. Options for shielding
    1. Policy and political risks

    11:25

    Discussion 3  

    Views on the investor perspective and how they might respond  

    Q&A

    11:40

    Discussion 4

    Policy risks and opportunities – Thoughts on the direction of policy and what happens next

    Q&A

    12:00

    End

What could a GB zonal pricing system look like and what impact could it have?

The DESNZ Review of Electricity Market Arrangements is considering the case for converting the GB electricity market into one based on zonal pricing, leading to extensive debate and strong views in the industry.  

The government is expected to make a decision whether to pursue zonal pricing before summer 2025 and the next CfD allocation round (AR7).  

However, the information as to how a GB zonal market might work in practice is limited. This webinar aims to bring together leading experts to explain the basics of zonal pricing and shed light on the options. We will aim to get beyond the current ‘for and against’ debate and consider issues such as:  

  • What are the basics of zonal market design and how does this differ from our current market?
  • How many zones could there be, what basis would they be set on and how often might zones change?  
  • What would zonal mean for existing and future Power Purchase Agreements  
  • How would trading arrangements work including the day ahead, intraday and balancing arrangements.
  • Implications for investment and how might risk be mitigated?
  • The impacts on consumers and how ‘losers’ might be shielded  

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