The European transmission system operators (ENTSO-E) are considering dividing the current electricity zone, which includes Germany and Luxembourg, into five new zones. This is according to a report, known as the “Bidding Zone Review” which was published on Monday. The report suggests that splitting the current zone into smaller ones would lead to a higher level of economic efficiency. However, there has been criticism of the proposal from the Association of the Automobile Industry (VDA) and the Federal Association of the Energy and Water Industry (BDEW), who argue that dividing the German electricity price zone would not be economically viable. They believe that the potential savings from such a move would be very small, while the industrial sector would face significant uncertainty and the investment climate for renewable energy would be negatively impacted. Baden-Württemberg’s Minister for Energy, Thekla Walker, also stated that the published “Bidding Zone Review” does not provide a reliable basis for splitting the unified German-Luxembourg electricity bidding zone. She believes that maintaining the unified zone is preferable to splitting it, as the European transmission system operators are only recommending the division due to formalities.
ENTSO-E Proposes Dividing Germany’s Power Zone into Five New Zones for Increased Efficiency
