Young Energy Podcast

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