Two price zones for the German electricity market — Market implications and distributional effects

Jonas Egerer, Jens Weibezahn and Hauke Hermann

Energy Economics, 2016, vol. 59, issue C, 365-381

Abstract: We discuss the implications of two price zones (i.e., one northern and one southern bidding area) on the German electricity market. In the northern zone, continuous increases in capacity with low variable costs cause large regional supply surpluses in the market dispatch, while in the southern zone conventional capacity decreases. As the spatial imbalance of supply and load is increasing, the current single bidding area more often results in technically infeasible market results, requiring curative congestion management measures.

Keywords: German electricity market; Congestion management; Bidding zone configuration; Distributional effects. (search for similar items in EconPapers)
JEL-codes: L51 L94 Q41 Q48 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:59:y:2016:i:c:p:365-381

DOI: 10.1016/j.eneco.2016.08.002

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