Woidke Examines Joint Electricity Price Zone Between Brandenburg and Polish Regions

The background to the debate is structural problems in the German electricity market. Although electricity prices in Germany are uniform, generation and consumption differ regionally. When more wind power is produced in the north than is needed or can be transported south through the grid, wind turbines must sometimes be shut down, which incurs costs. "Hohe Strompreise gelten als Hemmnis für die Wirtschaft und sind ein Ärgernis für die Verbraucher," according to Brandenburg sources.

Background: Why a New Electricity Zone Is Being Discussed

According to the IHK Schleswig-Holstein, a joint energy zone could reduce costs across Germany through more efficient use and create additional space for renewable energies. In the IHK's view, the model offers "günstige Voraussetzungen zur wirtschaftlichen Produktion und Vermarktung regional erzeugten Stroms, der stärker vor Ort genutzt würde." Woidke also calls for stronger regional use of energy, "damit Strom günstiger wird."

Already last year, northern German states had called for a reform of the electricity system to achieve lower prices in their regions. This met with resistance in Bavaria and Baden-Württemberg. At the EU level, there has also been longer-standing discussion that Germany should be divided into different electricity bidding zones; according to the Agency for the Cooperation of Energy Regulators (ACER), two to four zones were under discussion in 2022.

Resistance from the South and EU Debate

Back in 2022, there had already been discussions about splitting bidding zones in response to the gas crisis. Woidke stressed that it is necessary to "im europäischen Rahmen die Energiesicherheit und die Nutzung erneuerbarer Energien mehr in den Fokus zu nehmen." Brandenburg's head of government Woidke wants to take a closer look at a proposal from Schleswig-Holstein.

However, the coalition agreement between the Union and SPD does not provide for changes to the so-called electricity bidding zone. The examination of a joint electricity price zone between Brandenburg and Poland thus remains, for now, an open process still in its early stages.

Woidke affirmed that Brandenburg will carefully examine cooperation with Polish regions and orient itself within the European framework. Should the model actually be implemented, it would be a further step toward stronger cross-border integration of the European electricity market.