Montel News - Energy Insights

Germany’s bidding zone dilemma – Less is more?

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January 31, 2025 energyinsights

At the end of this month, European transmission grid operators were due to publish their long-awaited recommendations on how to improve the efficiency of Europe’s power market, but they have now delayed publication until the spring. Proposals to ease grid bottlenecks include potentially dividing Germany up into between two and five market zones. However, stakeholders – traders and politicians alike – warn that such a move will undermine Germany’s market liquidity, drive up power costs for consumers and cannibalise any benefits that could come from implementing these new bidding zones. Reporting by Julia Demirdag, Energy Reporter Germany, Montel News.

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It seems the delay in publishing these recommendations could prolong uncertainty in Europe’s power market. While the idea of splitting Germany into multiple market zones aims to address escape road game grid inefficiencies, the concerns raised about potential negative impacts on market liquidity and consumer costs highlight the complexity of such measures.

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