POWER: German Zone Split Could Lead to €10/MWh Discount in North

Dividing Germany's power market into zones could lead to a €10/MWh discount in the north by 2025, however, it won't be as beneficial as expanding the grid, according to a new study by think tank Frontier Economics, cited by Montel.

• The price could be discounted further by €6/MWh in 2030, while power prices in the south would rise and grid fee's fall, Frontier said.
• And northern Germany would see a devaluation of its renewable energy, without sufficient compensation from higher renewable power values in the south.
• Neighbouring power markets would likely pay more for power in the south, with the north seeing cheaper import prices.
• European TSOs are set to complete their review of EU bidding zones in December, after which national regulators will have six months to decide on potential reforms.