A debate is ongoing in Germany regarding the country’s unified electricity pricing system, with political leaders expressing divergent views on potential reforms. Alexander Schweitzer, the Minister-President of Rhineland-Palatinate, affirmed his support for maintaining a single national price zone, emphasizing that secure and affordable energy is fundamental for a strong industrial base and economic performance. He voiced concerns about potential additional costs for his state should the system be altered.
Mona Neubaur, Deputy Minister-President of North Rhine-Westphalia and State Minister for Economic Affairs, echoed this sentiment, arguing against dividing the unified price zone. She believes that while differentiated pricing might appear cost-effective, the logistical and financial burdens of such a transformation have been underestimated.
This discussion follows a proposal put forth by several Minister-Presidents from northern and eastern Germany to dismantle the existing unified system. They advocate for the abolition of the single bidding zone, a move that has drawn opposition from leaders in other regions. Markus Söder, Minister-President of Bavaria and Winfried Kretschmann, Minister-President of Baden-Württemberg, jointly stated their strong opposition to the proposal.
A recent study by European transmission system operators suggests that dividing Germany into five price zones could yield annual savings of €340 million by reducing reliance on expensive and environmentally damaging gas-fired power plants. This would theoretically result in lower electricity costs in regions with greater renewable energy expansion, primarily in the north and east. However, the study, based on 2019 data, does not account for recent advancements in renewable energy capacity and new transmission infrastructure, factors which could influence the potential outcomes. The report suggests a possible increase in electricity costs for southern Germany under such a restructured system.