New modelling from LCP Delta shows that measures under the UK government’s Reformed National Pricing Delivery Plan could reduce electricity network constraint costs by 2030.
The consultancy said its analysis indicates 2030 constraint costs could fall by up to 60% to £2.3bn if a combination of operational reforms is implemented.
LCP Delta added that this would support the government’s Clean Power 2030 target and reduce unabated gas generation in the GB power sector by up to 33%.
Constraint costs arise when electricity cannot be transported to where it is needed due to bottlenecks on the network and system operator NESO must redispatch generation.
NESO has projected constraint costs could reach £7.4bn by 2030, rising from £1.8bn in 2025.
LCP Delta’s modelling under the same scenario estimates the 2030 cost at £6.1bn before additional reforms.
The report identifies accelerated network upgrades in East Anglia as the largest single contributor to savings, reducing costs by £2.8bn in 2030.
Improving the carrying capacity of the existing network could deliver a further £1.1bn reduction in constraint costs.
“Renewables will form the backbone of a clean energy system in Great Britain, but achieving this requires a much stronger focus on network infrastructure,” said Chris Matson, partner at LCP Delta.
“In a debate too often clouded by complexity, this study shows that high constraint costs aren’t a technical inevitability but a challenge we can fix – and with the right reforms, we can unlock a cleaner, cheaper and more resilient energy system for consumers,” stated Cathrin Stadler, director and head of energy trading regulation at Centrica.