Reforming transmission charges could have as much of an impact on decarbonisation as the radical market reforms currently being considered, according to a new report.
The report, from Cornwall Insight in partnership with SSE, argues that the Transmission Network Use of System (TNUoS) charges faced by renewables generation, battery storage, and flexible demand are often not reflective of their impact on the system.
That leads to uncertainty among investors, driving up costs, and hindering the deployment of technologies crucial for achieving net zero.
The paper highlights a number of potential changes including TNUoS demand credits which could operate in a similar way to generation in areas where it provides benefit to the system, and an energy storage specific tariff.
Adam Boorman, Principal Consultant at Cornwall Insight, said:
“At a time when the government is considering revolutionary energy market reforms, there is also merit in considering the potential of more gradual approaches that can still deliver transformative results in less time and with minimal disruption.”