Cutting GB grid constraint costs: What Reformed National Pricing could achieve by 2030
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What are the impacts of Reformed National Pricing measures on GB grid constraint costs?
How to reduce network constraints and the associated costs has been a key focus of the debate on market reform over the last four years. With the publication of the government’s Reformed National Pricing (RNP) Delivery Plan imminent, this report provides a detailed picture of how constraint costs and their drivers are likely to evolve over the next 10 years and the impact that potential RNP measures could have on reducing them.
The analysis shows that targeted reforms can reduce costs quickly, cutting billions from projected constraint costs by 2030.
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Understand the scale of the constraint cost challenge
Based on a comparison of the NESO Holistic Transition scenario with LCP Delta’s Central Scenario from 2026-35.See what drives constraint costs
A look at how renewable build, location of assets and network availability interact to drive constraint costs.Explore impact of five key measures
Including improved network availability to reforms in interconnector redispatch, smaller asset participation, and forward contracting of flexibility.Assess the impact of combined reforms
The measures have the potential to lower 2030 constraint costs by £3.8bn under the FES HT scenario.Identify where the biggest savings lie
Highlighting interventions with the strongest cost-reduction potential.Recommendations for Reformed National Pricing
Provide six recommendations for DESNZ and NESO to reduce constraint costs.
From bottlenecks to balance: Impact of Reformed National Pricing measures on GB grid constraint costs
Download the reportScroll down to see our key insights
Key findings
Constraint costs are rising
NESO projects constraint costs exceeding £7bn by 2030 under FES HT.
LCP Delta modelling shows materially lower estimates, with £6.1bn under FES HT and £4.2bn under the LCP Central Scenario.
RNP measures can deliver large benefits by 2030
Combined reforms can reduce 2030 constraint costs from £6.1bn to £2.3bn.
Network availability improvements alone reduce costs by up to £1.1bn per year.
More efficient interconnector redispatch could reduce costs by up to £1bn annually.
Constraints before and after combined measures
What a co-ordinated package of reforms could achieve by 2030
This side-by-side comparison sets out the difference between the baseline 2030 constraint cost and the cost after applying a combined package of operational efficiency measures. It highlights the scale of the opportunity: a potential reduction from £6.1bn to £2.3bn under the FES Holistic Transition scenario. This reinforces a central finding of the report, that targeted, operational reforms can deliver meaningful cost reductions well before longer-term investment signals take effect.
Deep dive insights
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Constraint volumes have increased as renewable deployment expands in areas with limited transmission capacity. Low network availability in key Scottish boundaries during 2025 significantly amplified redispatch costs.
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One assumes rapid decarbonisation; the other reflects LCP’s independent view of deployment. This comparison highlights how technology rollout rates shape future constraint costs.
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- Accelerated network upgrades in East Anglia.
- Improvements to existing network carrying capacity.
- Increased participation of smaller assets in the BM.
- Forward contracting of flexible capacity outside the BM.
- Improved interconnector redispatch.
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The combination of four key measures under Reformed National Pricing could reduce the 2030 constraint cost under the NESO HT scenario by up to £3.8bn, a decrease of over 60%. This would bring constraint costs down to £2.3bn, only slightly higher than the £1.8bn observed in 2025.
