Octopus Energy, an active participant in the UK Government’s Review of Electricity Market Arrangements, asked FTI Consulting to assess how large energy-intensive consumers could save on electricity bills by locating their operations to make the most of regional prices. Together with Octopus Energy, our teams created two case studies, one for an electrolyser and one for a data centre, to see what would happen if they each sited their operation in Scotland instead of the South to make the most of regional pricing.
On the basis of the case studies, FTI Consulting revealed that all British consumers could save £500 million to £900 million in just one decade and make better use of renewables (to the tune of saving 17TWh of renewable power), while new large industrial plants could save 65%-99% in wholesale energy costs by leveraging locational electricity pricing.
British consumers could save £500M to £900M between 2030 and 2040 on wholesale electricity costs.
Approximately 17TWh of renewable power — enough to power 460,000 homes — could be saved, reducing carbon emissions.
Based on these case studies, large industrial plants could save an estimated 65% (up to 99% for flexible consumption) under a locational pricing design.
FTI Consulting’s work added to a previous assessment of the merits of locational wholesale electricity pricing in Great Britain for the Office of Gas and Electricity Markets and enabled Octopus Energy to participate in the ongoing policy debate on electricity market arrangements in Great Britain.
Our experts developed two case studies to assess the potential benefits: Locating a large new data centre, with fixed demand, in Aberdeen rather than Slough, and locating a large new electrolyser for hydrogen production, with flexible demand, in Peterhead, Scotland rather than on the Isle of Grain in Kent.
FTI Consulting’s energy team deployed its fundamental power market modelling tool to forecast hourly wholesale electricity prices in Great Britain under a national and zonal design from 2030 to 2040.
The team also assessed the impact of locational pricing and siting choices of consumers on the need for transmission investment.
FTI Consulting es la empresa líder en el mundo en ayudar a las organizaciones a afrontar el cambio y los procesos de transformación. Liderados por profesionales con amplia experiencia, nuestros expertos responden rápidamente a situaciones dinámicas y complejas, generando un impacto que marca la diferencia.
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