Nodal vs. zonal pricing
Client: BMWi
Project partners: Consentec, Ecofys, Connect, Frontier Economics, Öko-Institut, Prognos
Published: 2018
Zonal and nodal pricing represent the grid’s limited transmission capacity in the wholesale market in fundamentally different ways: one price per bidding zone versus an individual price at every grid node. Against the backdrop of rapidly rising redispatch volumes, we compared the two systems for Germany’s economics ministry, together with Consentec, against a catalog of assessment criteria — treating both as conceptual price regimes and mapping out the state of the science, including diverging expert views. The project included a series of three workshops at the ministry with 20–30 international experts each. This report was originally published in German.
Prof. Dr. Lion Hirth
hirth@neon.energy
+49 157 55 199 715
