Overview

• Bavaria's Minister President Markus Söder announced firm resistance to splitting Germany into multiple electricity price zones, citing potential harm to southern economies.
• Other states, including Baden-Württemberg, Hessen, North Rhine-Westphalia, Rhineland-Palatinate, and Saarland, have joined Bavaria in opposing the proposal.
• Think tank Agora Energiewende advocates for local price zones to reduce redispatch costs and lower electricity prices, particularly in wind-rich northern regions.
• Critics of the current single bidding zone argue it creates inefficiencies, such as wind energy curtailment in the north and higher consumer costs in the south.
• The EU's Bidding Zone Review, set to be published at the end of April, is expected to influence the debate on Germany's electricity market structure.