From this should be be looking for any line upgrades to include ETCS L2 capability.
NR intends to eventually upgrade nearly every line to ETCS L2.
This would particularly help for the Timetablers as they would have more paths to play with.
Yes and no. It has certain benefits but has zero impact on other problems.
(Also would this be a more cost-efficient capacity upgrade than the no-risk contracts they gave out)
Which no-risk contracts deliver more capacity?
The primary benefits from Level 2 are that you can have blocks as short as you need for any given headway, because they are no longer strictly tied to braking distances. It also allows the abolition of approach control, because the ATP function does that for you in a more efficient manner. However to have short blocks means increasing the interlocking complexity slightly.
However Level 2 does not fundamentally remove the constraints that stopping patterns, PSRs, speed differentials or different braking/acceleration capabilities impose, nor does it allow trains to get ahead of each other without additional track.
Level 2 in and of itself will not make lines faster, nor allow people to board/alight on the move, nor accelerate or brake faster (in fact braking curves may be lower because of the ATP factor).
So areas where L2 will give real capacity benefits are focused around Loops, Junctions and areas with trains at consecutive minimum headways on the same stopping patterns (e.g. major terminal approaches) already. Much of the network will largely not see any specific capacity upgrade from ETCS L2.
The main benefits of ETCS L2 to NR are the abolition of lineside signals, which removes a major risk of failure point, allows the simplification of lineside structures as Signal sighting becomes (almost) irrelevant, allows the elimination of any sighting-related restrictions, and allows a major cost in the design and approvals process to be massively simplified.