North German chairmen are calling for an end to uniform electricity prices!

North German chairmen are calling for an end to uniform electricity prices!

In a current debate about uniform electricity prices in Germany, the heads of government of several northern federal states, including Peter Tschentscher from Hamburg, Daniel Günther from Schleswig-Holstein, Andreas Bovenschulte from Bremen and Dietmar Woidke from Brandenburg, called for a fundamental change. Politicians are committed to dividing Germany into several electricity price zones in order to take regional differences in electricity production into account.

The discussion about uniform electricity prices has been going on for years. There is currently only one bidding zone in Germany, which leads to uniform wholesale prices. These prices are often based on wind energy from the north, which means that the southern German states, which have less wind power, must expect higher prices as a result. At the current prices, which will be around 40 cents per kilowatt hour in mid-2025, the pressure on politicians is correspondingly great Mirror reported.

Demands for more flexibility

One of the main reasons for the requirement for different zones is the high demand and low electricity prices, which puts a heavy strain on transmission network capacities. Grid operators are under pressure to adjust feed-ins, which not only causes additional costs but also poses technical challenges. The Agora Energiewende think tank even predicts lower electricity costs for the northern German states if zoning becomes a reality.

At the same time, business associations warn that a division into different bidding zones could lead to higher prices for industry in the south. The municipal utilities association VKU emphasizes that the economic and energy policy consequences must be carefully thought through. One of the possible structures envisages five electricity price zones, including a special zone for Schleswig-Holstein. This division could enable savings of up to 339 million euros, like Deutschlandfunk reported.

The path to implementation

However, there are also concerns. Hesse's economics minister expressed concerns about possible competitive disadvantages for companies in the south, while lower prices for wind farm operators in wind-rich regions could potentially result in lower revenues. A balance between feed-in and withdrawal in the power grid remains essential in order to prevent a grid collapse.

The federal government has so far committed to a uniform bidding zone, but there are signs of changes in the electricity sector. Technical developments and the construction of new wind farms could further fuel the discussion about regional electricity prices. The indications of potential new north-south direct current lines give hope for an era of increased efficiency, increased renewable energies and intelligent storage.

The politicians in the northern federal states have definitely kept a good hand when it comes to this discussion. It will be exciting to see how the debate about electricity prices develops in the coming months and whether the voice of the northern German states will be heard.