- How expansion at Heathrow will add routes and save money on ticket prices17.04.2014.
- Why discount supermarkets aren’t all they seem16.04.2014.
- EC clears Deutsche Telekom’s acquisition of GTS Central Europe15.04.2014.
- New Australia-Japan Free Trade Agreement08.04.2014.
- Frontier hosts discussion on healthcare regulation24.03.2014.
- Frontier Chairman authors report on wellbeing20.03.2014.
- Frontier speaks on dominance and pricing issues in network industries18.03.2014.
- Water regulator announces initial assessment of business plans10.03.2014.
- Frontier hosts consumer credit discussion event05.03.2014.
- Growing pains – New Frontier Economics bulletin14.02.2014.
Frontier assesses the effect of splitting European electricity markets
Germany and other European countries face increasing challenges in managing load flow and congestion on their electricity transmission networks. Some have argued that splitting one electricity bidding zone in two or more zones (“market splitting”) may help mitigate such congestion by sending cost reflective zonal price signals to network users.
In a recent report for the German energy regulator, Frontier (Europe) and technical consultant Consentec developed a framework to help evaluate the case for market splitting using technical and economic criteria. Appling this framework to the Germany-Austria bidding area, the report finds that the technical criteria for market splitting would not be met in this case. The report also finds that splitting Germany-Austria into two or more bidding areas may have an adverse effect on market concentration, market liquidity and transmission investment, which may deter the further integration of the European energy market.
Frontier regularly advises public private and sector clients on strategy and market design within the energy sector.
For more information, please contact Paul Cullum at firstname.lastname@example.org or call +44 (0) 20 7031 7000.