In this Power System Blueprint deep dive, Dominic Scott takes a comprehensive look at the challenge of implementing nodal pricing in Europe. As the penetration of variable renewable resources and distributed energy resources continues to grow, the advantages of nodal pricing are becoming increasingly clear. 

Providing a clear overview of the key elements involved in implementing nodal pricing, Mechanics of Implementing Nodal Pricing in European Wholesale Markets, is a technical resource designed to inform advisers with a grasp of technical details in fulfilling their role of supporting decision-makers. Readers will find a concise summary of the crucial points related to nodal pricing implementation, a visual overview of the current market arrangements and potential issues that may need to be addressed at the European level or by trailblazing Member States, and a detailed technical resource that delves into the core changes required.

This resource draws on a wealth of research and analysis to explore what is needed for the successful implementation of locational marginal pricing (LMP) – shedding light on the roles, responsibilities, and market designs necessary for this transition – and in the process helping demystify the process of LMP implementation.