The German grid regulator Bundesnetzagentur is considering separating Austria from the German electricity market in a surprising reversal of efforts to further integrate the member states’ wholesale energy markets. In a statement set to
Europolitics
, Bundesnetzagentur has confirmed that it is seriously considering such a move and that it is currently "forming an opinion" on the issue. The common bidding zone, which was introduced in 2002, could be split in 2018 at the earliest, according to Bundesnetzagentur. The German…
One market
Bidding zones are part of the European electricity grid (usually located along national borders) in which electricity can be traded at uniform prices without having to acquire transmission capacity. For power traders in the European market, the splitting of the Austrian-German bidding zone could entail significant consequences. Electricity for delivery in 2021 can already be traded, but problems could occur if the zone is indeed split in 2018. Daniel Hölder, an expert on energy policy at the German trader Clean Energy Sourcing, told Europolitics that the "common bidding zone with Austria is an achievement for the implementation of a common European electricity market." Consequently, splitting the markets would be a "retrograde step," he said. Among other things, it would make it difficult for Germany’s power traders and utilities to access the Austrian power exchange.