A potential split of the German bidding zone has gathered a great deal of attention in German public debate recently, even featuring prominently in the election campaigns of several German states. In a European multi-client study, we have analysed the potential impacts of such a split.

The study, conducted together with EWI (Institute of Energy Economics at the University of Cologne), examined the impact of potential bidding zone splits on power prices in Germany and neighbouring countries as well as a range of other relevant metrics, such as the market value for renewable generation, redispatch volumes and more.

We also investigated alternative scenarios for the build-out of network upgrades, electrolysers, batteries, and renewable generation and analysed the impact of these factors on price spreads and market values.

The study itself is confidential, but the Executive Summary with more details can be found here.

For more information, please contact Marcus Franken, who was the project leader for the study.