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Pricing the Split: What Consumers and Industry Will See on the Ground

Pricing the Split: What Consumers and Industry Will See on the Ground

Young Energy Podcast vor 10 Monaten

0:00

29:55

Reshaping electricity markets to be more flexible and responsive
to price signals is essential for the energy transition. To make
the system more efficient, resilient to grid constraints, and
better at reflecting true costs, more localized prices are needed
- prices that reflect the fair value of power in each region and
enhance overall welfare.

Germany and Luxembourg currently form Europe’s largest single
bidding zone, while other European countries use two, three, or
even more zones. A recent ENTSO-E study examined scenarios for
splitting Germany into two or more price zones and found
potential welfare gains. But how would such a split be
implemented, on what timeline, and what would it change in
practice?

In this Young Energy Podcast episode, Dr. Vadim Gorski,
co-founder of the energy consultancy Creatica, explains what a
German bidding-zone split could mean for renewable generators,
industrial prosumers, and retail customers, and highlights what
investors should watch for.

More information on the mentioned analysis on the German Bidding
Zone can be found here: https://t1p.de/cvolv

Episode Guide
Intro & Context
00:00 — Dr. Vadim Gorski: background and Creatica
02:30 — What is a bidding zone?
03:33 — The history of the bidding-zone split debate
05:10 — What does ENTSO-E recommend?
06:16 — What are the benefits of splitting zones?
08:00 — How to determine the optimal number of zones: an
optimization deep dive

Main Part: Results & Impact
11:20 — Impact of the split on solar generators
14:52 — Impact of the split on wind generators
16:50 — If northern prices fall after the split, will negative
price hours increase?
18:10 — Impact of the split on industrial producers
21:20 — The social angle: is it fair if consumers in the south
pay more than in the north?
22:20 — Impact on retail end-consumers
24:00 — How will Germany’s split affect other countries?
26:13 — When and how will the split be implemented?
27:30 — What should the industry be preparing for?
28:46 — Research materials and contact