The CEO of German energy giant RWE, Markus Krebber, has voiced opposition to proposals from European transmission system operators to divide Germany into five separate electricity price zones.
Krebber argues that analyses conducted by European authorities indicate only marginal benefits from such a division. He highlighted that these studies also failed to adequately consider the substantial adaptation costs associated with transitioning to a new system and the potential for significant investment uncertainty. This position aligns him with calls from Bavarian Minister President Markus Söder and Baden-Württemberg’s Minister President Winfried Kretschmann to maintain a unified national electricity pricing structure.
Instead of pursuing price zoning, Krebber advocates for prioritizing network expansion, the development of storage technologies and strategic placement of gas-fired power plants. He believes these measures represent the true solution to Germany’s energy challenges, citing a similar conclusion reached by the United Kingdom following comparable discussions several years ago.
Recent studies by European transmission system operators suggest that dividing Germany into five price zones could generate annual savings of 340 million euros by reducing the need for costly stabilization measures from gas-fired power plants. Electricity prices would decrease in regions with extensive renewable energy generation, such as Northern and Eastern Germany, while Southern Germany would likely experience price increases. However, Krebber points out that the underlying data for these projections dates back to 2019 and therefore does not fully reflect progress made in renewable energy expansion and new power line construction since then.
