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

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This is 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 while networking with 300+ industry leaders in central London.

 

  • 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

  • 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

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

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