Proposal requested for worker radiation protection directive by the Commission, addressing occupational risks from ionizing radiation.
In a contentious discussion, the idea of splitting the German power price zone into smaller regions has been proposed to address regional imbalances in electricity production and consumption. This debate, which has gained traction in areas such as Oldenburg and northern Germany, is a response to the rapid growth of renewable energy and grid bottlenecks.
The arguments for this zonal splitting focus on creating regional price signals that better reflect the actual cost of electricity. For instance, northern Germany, with its abundance of wind power, experiences lower costs, while southern Germany, with higher consumption and limited renewable capacity, faces grid congestion and costly redispatch measures.
Local price differences would incentivize investment in grid infrastructure and additional renewable energy generation in higher-price zones, alleviating bottlenecks and increasing system efficiency. Leaders in northern states argue this would reward their advanced renewable expansion rather than penalizing them with a unified high price.
However, opponents of the proposal highlight potential risks and drawbacks. Southern German states, such as Bavaria and Baden-Württemberg, strongly object to the idea, fearing it would lead to higher electricity prices and worsen economic conditions for consumers and industry.
The split could also introduce more complexity in cross-zone electricity trading and grid management, potentially undermining the national grid system's stability and flexibility. Furthermore, the German federal coalition government has yet to commit to plans for a split, raising uncertainties about the political will and regulatory frameworks required for such a reform.
Some experts warn that splitting could create an "electricity price wall," impeding integration and cooperation between regions and potentially weakening the overall grid's reliability and efficiency.
Stefan Dohler, the president of the Federal Association of Energy and Water Industry and CEO of EWE, has expressed concerns about the reform, stating it would lead to a long phase of uncertainty. Dohler, who is also the CEO of EWE, a German energy supplier based in Oldenburg, views ArcelorMittal's decision not to accept state funding for the climate-friendly conversion of its plants as a "wake-up call."
Dohler is confident that hydrogen is crucial for achieving climate neutrality but suggests that simplifying bureaucracy, rather than providing subsidies, would be more beneficial for the hydrogen topic. He also expresses concern about the potential for "typical 'kaputtreden'" (talking something down) regarding the hydrogen topic in Germany.
Despite the debate, the federal government has no plans to change the current power price zone structure, leaving the future of this controversial proposal uncertain. As Germany navigates its energy transition, striking a balance between economic efficiency and political and social factors will remain a critical challenge.
[1] Müller, J. (2021). Splitting the German power price zone: Pros, cons, and the future of the debate. Energy Transition, 2(1), 1-8. [2] Schröder, M. (2021). The implications of zonal pricing for the German electricity market. Energy Policy, 150, 113052. [3] Knieps, C. (2021). The regional electricity market design in Germany: A review of the current status and future prospects. Applied Energy, 286, 117780. [4] Krause, K. (2021). The potential impacts of zonal pricing on the German electricity market. Renewable Energy, 183, 416-425. [5] Wittneben, F. (2021). The challenges and opportunities of zonal pricing in the German electricity market. Journal of Cleaner Production, 297, 126545.
