UK electricity market and the integration of renewables

Project summary

Ocean Winds (OW) is sponsoring this PhD studentship. OW is an international company dedicated to offshore wind energy and created as a 50-50 joint venture, owned by EDP
Renewables and ENGIE.

The electricity market in the UK is a complex and evolving system that plays a critical role in the country's energy transition towards a more sustainable future. As the electricity sector undergoes significant changes, market design has become a crucial area of research to ensure efficient, reliable, and sustainable electricity markets. The Review of the Electricity Market Arrangements (REMA) has been introduced by Government to ensure the GB Market is fit for purpose to deliver security of supply and consumer protection within a net-zero energy system. This project aims to investigate how existing wholesale market arrangements can be adapted to promote economic efficiency for the broader UK economy while removing or reducing locational signals from generation to enable investment and reflect the need to locate renewable generators where resources are most plentiful.

In essence, what market design removes or reduces locational signals, promotes investment in
renewable generation, increases system flexibility, retains operability, and manages price
volatility while minimising system and thus consumer costs?

Objectives

1. To analyse the current market structure and mechanisms in the UK electricity market, including the wholesale market, the retail market, and grid management, and evaluate their efficiency in terms of promoting economic welfare, grid stability, and sustainability.
2. To investigate the impact of renewable energy integration, energy storage (including hydrogen production), demand-side participation, and other emerging technologies on the electricity market design in the UK, and identify opportunities for improving market efficiency and effectiveness.
3. To assess the effectiveness of policy and regulatory frameworks in shaping the electricity market design in the UK, and provide recommendations for potential regulatory reforms, market interventions, and policy measures.