Electricity prices in the north: Things will soon be cheaper for consumers!

Electricity prices in the north: Things will soon be cheaper for consumers!

Rising electricity prices are causing problems for many consumers in northern Germany, even though the region has a rich source of cheap wind power. The discussion about the effective distribution of energy costs is gaining momentum. SHZ shows that even in Schleswig-Holstein, where wind power is one of the main sources of electricity, consumers continue to have to pay higher prices per kilowatt hour. This is due to the inefficient structures of the German power grid.

The special thing about the situation in Germany is that all electricity buyers pay the same wholesale electricity price, regardless of location. This means that consumers in cities like Munich, Berlin and Kiel have the same prices, even if local production varies greatly. Hans-Hermann Magens, managing director of the Raa-Besenbek community wind farm, points out that the producers of low-cost wind power do not benefit from the lower prices that should result from their production.

High network costs in the north

Another factor that keeps electricity prices higher in northern Germany is the network costs. These are subject to strong fluctuations and have a significant impact on end consumer prices. From January 2025, a nationwide reform will come into force that aims to reduce high network costs in the north by 29 percent. At 10.9 cents per kilowatt hour, Schleswig-Holstein will no longer be the upper limit, but will occupy a middle position. This could be a relief for many households.

However, the federal states and the federal government are against division into several electricity price zones. Dr. Lion Hirth, professor of energy policy, criticizes this decision and suggests a reform like that already implemented in other EU countries. Loud Deutschlandfunk Such a division could create more flexible prices and incentives for the urgently needed network expansion.

Economic impact and future prospects

The latest studies spark discussion about the possibility of regional price signals, which are necessary for a sustainable energy transition. Economist Achim Wambach suggests that the German energy landscape should be better balanced in order to save costs. The BDEW has also highlighted the potential savings that could be up to 339 million euros through regionally divided bidding zones. One proposal even envisages dividing Germany into five different bidding zones, which could significantly reduce measures such as redispatch, i.e. the intervention of network operators.

All of these developments have implications for the wind power industry, which is hoping for cheaper prices in the north to attract both consumers and businesses. Magens makes it clear that the electricity prices produced should also be correspondingly attractive in the north in order to ensure competitiveness.

Overall, the situation remains tense and the pressure on the federal government to reform the electricity pricing system is growing. The markets are changing and it remains to be seen whether the planned changes will actually take effect. Ultimately, the success of the energy transition and the future competitiveness of the region depends on fair and competitive electricity prices being provided.