The Centre for Net Zero Market Design
The UCL Centre for Net Zero Market Design researches policy and market reforms for a low-carbon UK electricity system, focusing on surplus energy, investment, and global energy transitions.
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About the Centre / Projects / Outputs and impacts / People
Our mission
The UCL Centre for Net Zero Market Design provides independent, evidence-based research and analysis to inform policies for a rapidly decarbonising UK energy system, with stakeholder engagement to support delivery of an investible market and efficient operation for business and consumers.
The challenge
Decarbonising electricity is the cornerstone of broader transition of the global energy economy, and radical innovation is driving fundamental changes in how we generate, transport and use electricity. Effective design of electricity markets is essential to ensure adequate investment and efficient operation of the emerging systems. Success can deliver decarbonised electricity that reliably meets the needs of consumers at affordable prices; failure would lead to the opposite.
Faced with these challenges and building upon our earlier stakeholder-engaged research we’ve established a new Centre for Net Zero Market Design, shaped in consultation with industry and other stakeholders.
Our focus
Within the ultimate goal of delivering Net Zero emitting energy systems, our priority focus is on the need for effective market design to sustain the UK electricity sector transition, and on related challenges elsewhere drawing on the UK experience.
- Provide independent research input to the wide-ranging policy and regulatory reforms that are required to decarbonise the UK electricity system within a decade.
- Specifically, work with the ongoing UK Review of Electricity Market Arrangements (REMA) and related initiatives under the new government.
- Contribute academic insights including from international experience, and relate UK options to developments in European electricity markets.
- Train a new generation of electricity market expertise fit for the global transition through our collaboration with Masters programmes.
- Capacity building through engagement of various stakeholders.
Core projects
Until recently, the primary concern for electricity market reform has been ensuring sufficient investment in renewable energy generation technologies across GB. As we accelerate towards ambitious targets for installed renewable capacity, new challenges are arising. In our second REMA consultation response, we conducted preliminary analysis approximating the volume of electricity generation that could surpass demand in 2030. Our results indicate that a core focus for this new era of market reform should centre around the economics of the likely surplus of electricity generation from renewables at times of high output, as detailed in our Working Paper ‘Generating Surplus’. Our 2025 Core Research Plan builds upon this theme, with a set of three interrelated projects:
The value of wind and solar PV in Great Britain
This project assesses the economic value of wind and solar PV in the context of increasing penetration of variable renewable energy (VRE) in Great Britain.
Investigating the evolving landscape for storage investment in Great Britain
This project identifies and addresses the barriers to investment in storage and flexibility technologies in Great Britain.
Realising the value of renewables post-contract - issues and options for ‘Merchant Tail’ generation
This project investigates the issues and policy options for ensuring the effective use of renewable generators coming to the end of their current support contracts.
Outputs and impacts
Explore outputs from the Centre, including working papers, reports, presentations and consultation responses.
Associated projects
Centre and affiliated staff are also engaged in several ongoing associated projects, drawing upon research supported from additional resources:
Exploring the economic and financial value of battery energy storage systems (BESS) in the EU
This project assesses the economic and financial value of battery energy storage systems in European power systems through two core phases.
Building upon the UKERC briefing paper Policy, Risk and Investment in UK Offshore Wind Capacity, this project investigates the most effective way of incentivising the investment required to further accelerate offshore wind investment, while rewarding the flexibility to match supply and demand. This project was launched between UCL’s Climate Finance team and the Energy Systems Modelling team at the University of Strathclyde, Funded by UK Research and Innovation, Energy Programme through UK Energy Research Centre. Contact: s.maximov@ucl.ac.uk
Exploring the consistency of announced goals, vis-à-vis actual trends in energy investments in gas and electricity. One working paper 'European Natural Gas through the 2020s', with blog ‘Europe’s gas roller coaster’. Project second leg examining UK-EU energy relationships including the terms of electricity trade and investment in multi-purpose interconnectors. Funded by Institute of New Economic Thinking. Contact: yaroslav.melekh@ucl.ac.uk
Systems mapping and modelling, a study with Oxford University and four Chinese partners to inform options for integrated reform and decarbonisation of the Chinese electricity system. Final report launched on 5th June. Funded by Quadrature Climate Fund and the UK Department for Energy Security and Net Zero. Contact: simonsharpe@climatechampions.team
The project has been conducted in close collaboration with the UK Department for Energy Security and Net Zero (DESNZ) through a policy secondment, exploring the political economy and technical barriers to effective UK-EU electricity trade in the North Seas, particularly in the context of proposed offshore hybrid assets (interconnectors). The project focuses on mapping system-wide policy, economic, infrastructure and political drivers and bottlenecks under the UK-EU Trade and Cooperation Agreement (TCA). It aims to inform UK government engagement with the EU by identifying hard-to-monetise benefits, energy security and other mutual interdependencies, as well as the political dynamics shaping electricity trade. The work comes at a critical time ahead of the UK-EU Summit and forthcoming TCA Energy Chapter review, and amid a renewed political momentum on both sides.
Discover how our previous work shaped the Centre
Professor of Energy and Climate Change at UCL, and Deputy Director for the Institute for Sustainable Resources
Strategic leadership of the centre is provided by Professor Michael Grubb
Chair of the Advisory Board
The Chair of the Advisory Board is Simon Virley CB FEI, Vice Chair and Head of Energy & Natural Resources, KPMG UK.
KPMG, Simon Virley (Chair)
Centrica plc, Rajarshi Roy
DESNZ, Harry Mayhew*
Energy UK, Dhara Vyas
European Federation of Energy Traders, Mark Copley
National Grid, Chris Bennett
NESO, Lizzie Blaxland*
No.10 Delivery Unit, Phil McNally*
Northwestern University, Sante Fe Institute, Lynne Kiesling
Ofgem, Gavin Knott
Rothesay, Holly Cook
SSE Services plc, Alistair McGirr
UCL, David Shipworth
UKERC, Rob Gross
*Public organisations with direct responsibilities for developing, conducting and implementing government programmes participate with Ex-officio Observer status.
Dr Serguey Maximov, Research Fellow
Max Collett, Research Fellow
Katrina Salmon, Research Fellow
Margaux Daly, Research Assistant
Tim Lancaster, Senior Operations Advisor
Tim is our Senior Operations Advisor, contributing to fundraising, operational design and troubleshooting. He has a wealth of commercial experience from building, running and selling a successful Cambridge start-up, being Head of Technology for BBC Worldwide, Operations Director and Director in China for Carbon Trust, and as a Senior Consultant for Accenture.
Mason Parker, Operations & Partnerships Manager
Mason Parker is an experienced professional in the energy, finance, and policy sectors, with nearly a decade of relevant experience in project management, research, and business development. Mason works under Prof Michael Grubb, and manages the Centre for Net Zero Market Design, part of the Institute of Sustainable Resources at UCL. His key responsibilities include engaging with institutional partners and the CNZMD advisory board, as well managing the day to day operational needs of the Centre.
Partners
We’re pleased to have received the support of Centrica plc, SSE, Rothesay and National Grid, which has enabled the Centre for Net Zero Market Design to launch.
We engage with corporate and philanthropic partners who share our vision of an electricity market which is robust, affordable, just and actively harnesses the opportunities for a decarbonised system. We seek to foster intelligent and collaborative exchanges between academia and wider sector stakeholders and provide independent, evidence-based recommendations to UK government and policy makers.
Our academic independence
Our partners are committed to the academic independence of all research produced by us, in keeping with the legal and moral requirement that philanthropic gifts do not afford donors any expectation of benefit.
Partner with us
Contact Anjali Singh, Senior Philanthropy Manager (The Bartlett) for information on how you can partner with us: advancement@ucl.ac.uk
Contact Anjali