PS22252 - Low Carbon Assets - Systems Benefits from Efficient Locational Signals (RAF039/2223)

Tender description

***** THIS IS AN AWARD NOTICE, NOT A CALL FOR COMPETITION ***** This procurement is being concluded following a mini competition under the CCS RM6126 DPS Brief Description of Requirement: The project is intended to obtain quantitative insights into the scale of possible system benefits from optimally efficient locational signals, to inform market design policy decisions under the Review of Electricity Market Arrangements (REMA). At a high level , the results will also have relevant to policy strategy for future Contracts for Difference auction rounds. This research project is not intended to inform a specific policy recommendation on how best to send locational signals; we anticipate that the concept of 'optimal' locational signals would be represented in the model through siting and dispatch decisions (for generation and flexibility assets) being made endogenously to minimise system costs, within a set of exogenous constraints. Results from this project would complement other evidence gathering and policy development on specific mechanisms for delivering signals within the wider packages of reforms being considered by REMA.