(de-news.net) – Alexander Schweitzer (SPD), Minister-President of Rhineland-Palatinate, has declined proposals to dismantle Germany’s unified electricity pricing zone. He expressed apprehension regarding potential economic disadvantages for his federal state and emphasized that secure and affordable energy constitutes a foundational prerequisite for industrial competitiveness. In a similar vein, Mona Neubaur (Greens), Deputy Minister-President of North Rhine-Westphalia, asserted that fragmenting the pricing zone would be an ill-advised course of action. She contended that the substantial financial and logistical burdens associated with such a transition were being overlooked in favor of speculative efficiency gains attributed to regional differentiation.
Several political leaders from northern and eastern German states have advocated for the abolition of the national electricity bidding zone. Their cross-party initiative, as reported, aimed to introduce regionally differentiated pricing mechanisms to reduce electricity costs in their respective jurisdictions. Among the proponents were Peter Tschentscher (SPD), First Mayor of Hamburg; Daniel Günther (CDU), Minister-President of Schleswig-Holstein; Andreas Bovenschulte (SPD), Mayor of Bremen; and Dietmar Woidke (SPD), Minister-President of Brandenburg. These top officials argued that regional price signals would more accurately reflect local supply conditions and foster both technological innovation and the expansion of renewable energy sources. In contrast, southern state leaders such as Markus Söder (CSU) of Bavaria and Winfried Kretschmann (Greens) of Baden-Württemberg have already opposed the initiative, warning of increased financial burdens for their regions and pledging to resist any structural changes.
Markus Krebber, Chief Executive Officer of RWE, similarly criticized the proposal, referencing analyses conducted by European transmission system operators that suggested only marginal benefits. He advocated for the preservation of the existing unified pricing zone, highlighting the considerable adaptation costs and investment uncertainties that would accompany a systemic overhaul. Krebber recommended that governmental efforts be redirected toward infrastructure development, the advancement of energy storage technologies, and the strategic deployment of gas-fired power plants. He cited the United Kingdom’s analogous deliberations, which ultimately resulted in the retention of its unified pricing framework.
A study conducted by European transmission operators estimated that segmenting Germany into multiple electricity pricing zones could yield annual savings of approximately 340 million euros by reducing dependence on expensive and carbon-intensive gas power generation. Electricity would become more affordable in northern and eastern regions with advanced renewable infrastructure, while southern states would likely experience increased costs. However, the study was based on data from 2019 and did not account for recent progress in grid expansion or renewable energy deployment. The CDU, CSU, and SPD reaffirmed their commitment to maintaining the current unified system within their coalition agreement.
