GB wholesale electricity market reform: impacts and opportunities for Scotland

Abstract

This study explores the impact that locational marginal pricing (LMP), as an approach to wholesale electricity market reform, could have in Scotland. LMP is currently being explored as part of the Review of Electricity Market Arrangements (REMA), the UK Government’s consultation on the reforms required to make electricity markets fit for a net zero energy system. REMA’s scope of potential reform is very wide, looking at almost all aspects of electricity markets. As LMP has the potential to significantly impact Scotland’s energy landscape, it is of particular interest.