Compatibility assessment of dispatch options with GB cross-border markets

Cross-border markets play a key role in GB’s wholesale electricity market. Reforming electricity markets through the Review of Electricity Market Arrangements (REMA) programme is vital to the delivery of a fully decarbonised electricity system. 

The REMA reforms under consideration, the move to a zonal wholesale market and review of dispatch arrangements, aim at better aligning the wholesale market and the operational needs of the GB system.

The various market design options could alter the interactions between cross-border markets and GB wholesale markets. 

The impact of these potential reforms on and interaction with cross-border markets is uncertain. This assessment will provide insights into the potential changes and implications that market reforms could introduce, allowing for informed decision-making and effective management of the GB cross-border market. 

Benefits

This project will explore how REMA reforms under consideration impact and interact with current and future cross-border trading arrangements. Insight into these interactions will allow for informed decision-making in REMA, effective management of the GB cross-border market, and potentially first-of-a-kind solutions to align REMA reforms with cross-border markets by including: 

• A robust qualitative assessment of all market design options answering the questions as detailed in the scope in the form of a report, including comparisons between the different market design options and process diagrams to facilitate the understanding of the explanations provided.  
• A report that also highlights any market arrangements that wouldn’t work in combination with any GB dispatch and locational pricing option and should detail the rationale behind this.  

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