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Energy Markets

We will encourage competitive, coordinated and coherent whole energy markets that result in the most cost-efficient energy system and give us the tools and services to operate in a low-carbon energy landscape.

Markets allow businesses to provide services to the energy system, enabling the system operator to decide how market participants flexibly generate, store and consume energy. Through competitive processes, markets deliver lower costs for consumers, whilst creating economic growth for Great Britain by rewarding businesses for acting in a way that is beneficial for the system.

Markets drive healthy competition, which results in delivering the best value for consumers and stimulates investment in the emerging technologies or services that we will need in the future. A diverse set of different markets across our energy system can work together to drive affordability, security of supply and decarbonisation.

Projects

Net Zero Market Reform

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Our Net Zero Market Reform project is holistically examining the changes required to unlock renewables and secure savings for consumers. The report details our recommendations for a high-level package of reforms.

Whole Energy Market Strategy (WEMS)

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Our Whole Energy Market Strategy team was established in early 2024 to develop an independent view of cross vector market interactions, providing recommended solutions to tackling challenges, conflicts and inefficiencies to facilitate net zero.

Early Competition

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Early Competition is a competitive process to select a bidder a solution or a specific need on GB's electricity transmission system. The process begins ‘early’, prior to the detailed design, surveying and consenting phases of solution development.

Stability Market Design

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As more non-synchronous generation enters the system, NESO needs to secure alternative sources of stability. We’re investigating the best option for an end-to-end Stability Market Design to enable an open, transparent and competitive market.

Publications

Markets Roadmap

The need to decarbonise the power sector is driving a fundamental shift in how stakeholders use and interact with the electricity system. NESO’s annual Markets Roadmap sets out our ambitions, principles and process to transform GB’s markets.

Electricity Capacity Report

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Our Electricity Market Reform (EMR) Modelling team measures the contribution that different technologies make to security of supply. Each year, they publish their modelling and provide annual recommendations in our Electricity Capacity Report.

Frequency Risk and Control Report

Published annually, this report includes an assessment of the magnitude, duration and likelihood of temporary deviations in system frequency, forecast impact and the cost of securing the system.

Electricity markets explained

What exactly are electricity markets, and how do they fit into GB’s decarbonisation goals? Deep dive into the fundamentals here.

EMR Delivery Body Portal

Here you can find updates on the EMR Delivery Body Portal. The EMR DB New Portal aims to streamline transactions, improve guidance and provide personalised customer journeys for the Capacity Market participant.

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Gas Market Strategy

The gas market team will bring networks for gas and electricity together and take a more strategic long-term approach identifying whole energy system needs and ensuring that the system can be designed and built accordingly.