Not sure I agree. If there’s an excess of RE in one location that isn’t being utilised then the solution is investment in the grid or storage to remove the bottleneck. Can’t see why zoning makes that any different; if anything it might make it worse… - ThreadSky

baronmax.bsky.social • 18 days ago

Not sure I agree. If there’s an excess of RE in one location that isn’t being utilised then the solution is investment in the grid or storage to remove the bottleneck. Can’t see why zoning makes that any different; if anything it might make it worse…

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robertosfield.bsky.social•18 days ago

Lower prices in areas with high Renewables will encourage households and businesses to move to those areas.

jezclimas.bsky.social•18 days ago

Interesting. Energy prices are such a small part of people's outgoings that I don't see this being a strong effect probably for households.

I can see it working for energy intensive industries.

robertosfield.bsky.social•18 days ago

Agree that business will likely care more about energy costs than households if they use lots of power.

One factor that lower electricity bills would make to households is how compelling electrifying heating becomes, so could spur more rapid transition in those areas.

jezclimas.bsky.social•18 days ago

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.

richardlowes.bsky.social•18 days ago

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.

jezclimas.bsky.social•18 days ago

Is it not a zero sum game? How does zonal pricing reduce the overall revenue of energy companies?

wiilp.bsky.social•18 days ago

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.

richardlowes.bsky.social•18 days ago

Well it might help get the storage built rather than just relying on constraint payments. I share the concern on network capacity but that is not a market issue... Led by NESO

baronmax.bsky.social•18 days ago

To incentivise storage that assumes that zonal pricing will increase the opportunities for arbitrage vs national pricing. Maybe it will, but it’s unclear to me why that would be the case…. an area like London with low RE penetration will just have the price set by gas

l-bow.bsky.social•17 days ago

An area with lots of renewable capacity stuck behind a transmission constraint would see a wider price spread I think, making the economics of storage better.

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