From bottlenecks to balance: How to reduce GB grid constraint costs
Comparing LCP Delta modelling with NESO forecasts on future constraint costs
A new report by LCP Delta has highlighted that the implementation of various measures under the upcoming Reformed National Pricing Delivery Plan could reduce 2030 constraint costs by up to £3.8bn and make the government’s Clean Power 2030 target more achievable.
Join us as we explore how constraint costs could evolve over the next five years and we compare the latest modelling to NESO’s forecasts where the system operator projected constraint costs could reach £7.4bn by 2030, whilst LCP Delta modelling of constraint costs under the same scenario, but updated to align with latest NESO assumptions, projects the 2030 constraint cost at a lower level at £6.1bn
The report highlights that a combination of four key measures implemented under RNP could reduce the 2030 constraint cost by up to £3.8bn, a decrease of 60%. This would bring 2030 constraint costs down to £2.3bn.
The measures looked at in the report are:
- Accelerated network upgrades in East Anglia.
- Improvements to existing network carrying capacity.
- Increased participation of smaller assets in the Balancing Market (BM).
- Forward contracting of flexible capacity outside the BM.
- Improved interconnector redispatch.
In this webinar, we will discuss:
- What’s driving future constraint cost projections.
- The options on the table for government.
- Which reforms could deliver the biggest savings.
- What this means for market participants and investors.
