Design Options for Nodal Pricing in GB

Tender description

This procurement is for a party to support and work alongside Ofgem in delivering a technical assessment of nodal pricing for GB. Ofgem is keen to investigate further the potential of nodal pricing in enabling a cost-effective, secure pathway to Net Zero for the whole energy system. Greater locational and temporal market signals have the potential to drive more efficient use of system assets and lower total system costs by: * incentivising optimal demand and supply responses (in the right place at the right time); * stimulating innovation in storage and demand response in the places it is needed; and * supporting competition between demand/storage solutions and new network capacity. Lot 1: This contract is for an overarching assessment of the value of nodal pricing to GB consumers and in achieving the UK’s decarbonisation targets.