In Q2 of 2025, the UK Government will decide whether to move away from a national electricity market - and zonal pricing is firmly on the table. If implemented, it could permanently shift how and where battery energy storage assets make money in Great Britain.
Battery investors face a new reality. Grid constraints are rising. Flexibility is becoming increasingly important. Both proposed market reforms (a reformed national price, or a zonal price) may change the predictability - and profitability - of today’s dispatch strategies.
- Location already shapes long-term revenue performance across GB: southern demand zones outperform in the long-term, while generation-constrained zones underperform.
- Zonal pricing would codify this disparity into the wholesale market - changing price signals, not just control room dispatch orders.
- Reformed national options (like non-firm access or enhanced TCLC rules) would also change revenue projections, especially without improved constraint data or non-dynamic capacity allocation.
This article outlines what both reform pathways could mean for GB battery business cases and highlights the actions operators, developers, and investors should take now to stay ahead.
The key takeaways
Revenue certainty is reduced. A reformed national or Zonal market will change the predictability of current dispatch patterns.
- Re-run your siting analysis. Dispatch and revenue potential will increasingly depend on which side of the key constraint boundaries you're on.