I agree with the incentives for zonal pricing to encourage clean local
production. The downside however is that the grid becomes defunded and
a tragedy of commons ensues. We invest in common infrastructure
precisely because of variance, which in the long run we hope to
ameliorate.
Zonal pricing (UK) does not conflict with grid funding, it is the grid funding. It also exposes the economic incentives for allowing new grid infrastructure to be built.
I hope you're right. Incentives both ways and support for national
infra is ideal. Lithuania, Latvia and Estonia just showed [0] how
flexible grids can be at the international level. However I think at
the national level some countries aren't that happy to support
national grids.
