The localising effects on electrified heating would be interesting. It could end up slowing heat pump adoption in the south-east of England while potentially speeding it up elsewhere.
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The modelling suggests cheaper prices IN ALL REGIONS but, some areas end up having higher costs than others. So the gas/electricity cost-differential should be better everywhere.
I do see the point that increased investment in storage and distribution to facilitate sub-optimal placement of intensive energy uses makes sense and if it does motivate that change and bring about lower costs for all, then that's fantastic.
But if the intended changes in demand don't happen or happen slower than modelled... does someone living near a datacentre in Reading get a bigger bill, while someone living near an empty space in Aberfeldy get a smaller bill?
How mobile are 'electricity intensive' industries in the model - would (eg) steel industry really relocate from Wales to Scotland, how long will that take?
Until that happens, the benefits of zonal pricing would not be realised - we'd still need transmission capacity to power the existing sites.
We have an early example of energy intensive industry here in Scotland that runs off Renewables (hydro) - at Fort William there is an aluminium smelter:
It's an amazing hydro system, draws water from dams 30 miles away on the other side of Ben Nevis. 70MW iirc? (Ex N Scots loon here!)
Moving eg Port Talbot to Scotland, would take many years, to relocate ~200MW of load. Maybe quicker/cheaper to build transmission than to incentivise loads to move?
Sounds good plan! Are those enough load to materially affect the price balance - there'll be 10s of GWs of Scotwind needing to be soaked up on some days but not on others?
Think that only the most energy-price-sensitive heavy industries would be persuadable to move, and there's not so many left?
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Sorry for being slow with this, I'm not a grid person!
Until that happens, the benefits of zonal pricing would not be realised - we'd still need transmission capacity to power the existing sites.
https://alvancebritishaluminium.com/
Building new industrial complexes takes times, will help to have existing industrial hubs. Newcastle and Aberdeen?
Moving eg Port Talbot to Scotland, would take many years, to relocate ~200MW of load. Maybe quicker/cheaper to build transmission than to incentivise loads to move?
Data centres are popping up fresh, so they may as well be in Scotland. Less energy needed to cool them up there too.
Think that only the most energy-price-sensitive heavy industries would be persuadable to move, and there's not so many left?