Power prices in northern Germany may fall as much as 21 percent if Europe’s biggest economy is divided into regional markets, according to consultant Frontier Economics.
Average day-ahead prices in the north, where most of Germany’s wind power is generated, would drop as much as 8 euros ($11) a megawatt-hour by 2020 under the plan, while those in the south would rise 3 euros from last year’s levels, Christoph Reichmann, a director at Frontier Economics, said at an energy seminar in Stockholm. The European Union is assessing bidding zones as a way to improve the bloc’s power network efficiency.
