Space-time prices of wholesale electricity in England and Wales

Economic values of wholesale electricity for 11 areas in the supergrid of England and Wales are estimated for one half-hour each in winter peak and summer trough 1995/6. Estimates are obtained from the dual of a linear mathematical programme patterned after an optimal power flow, a traditional engineering tool for minimising generation costs in a supergrid. The economic value of wholesale electricity in a supergrid is a function of the size of demand and the adequacy of transmission capacity, both of which influence the intensity of competition amongst gensets. Information on the space-time value of wholesale electricity may contribute to business and regulatory policy decisions as regards Pool pricing, genset market power, capacity additions in generation and transmission, and increases in London demand.