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This workshop report by the Climate Policy Initiative (CPI) examines the technical challenges of implementing nodal pricing in European power markets to facilitate the integration of intermittent renewable energy. It compares the European approach, including the EU Target Model, with the experience of US Independent System Operators (ISOs) and PJM, focusing on the conflicts between market flexibility and system security, the integration of energy and reserve markets, and the use of shadow prices to inform grid investment.

This research paper by the Climate Policy Initiative examines the implementation of nodal pricing in power markets, primarily drawing on experiences from US Independent System Operators (ISOs) and the Iberian power market. It addresses the costs of transition, mechanisms for hedging locational price differences, the role of ISOs in system security, and the integration of variable renewables like wind and hydro power.

This executive summary describes the 'European Smart Power Market Project', which evaluates how current EU power market designs affect the transition to low-carbon energy. The project argues that existing regional and zonal pricing models impede the integration of renewable energy and recommends a transition to nodal or locational marginal pricing (LMP) to optimize transmission capacity and reduce costs.

This report by the Climate Policy Initiative argues that Europe's current power market designs are insufficient to support the transition to a low-carbon energy system and the goals of a smart grid. It advocates for a transition from zonal pricing and market coupling toward an integrated power market based on locational marginal pricing (nodal pricing), citing the US experience as a successful model for managing transmission constraints and integrating intermittent renewable energy.