Does the electricity market need local prices for stabilization?

Hello everyone,

I have been intensively studying the current energy policy lately and came across an interesting question that I would like to discuss with you. Do you believe that the electricity market really needs local prices to be more stable and effective? Energy economists argue that small regional electricity prices are necessary to better regulate the market and meet the growing challenges of the energy transition. Through such mechanisms, regional grid overloads could be minimized and the actual demand for electricity could be covered more efficiently. Do you also see the need to recognize potential in such local price structures, or are there better alternatives to solve this problem?

I look forward to your opinions and experiences!

Do you believe that the electricity market really needs local prices

These already exist today from local providers. Preferably the local utilities.

to be more stable and effective?

What do prices have to do with market stability? Are you mixing up grids and prices?

First of all, we need large connections from the places where electricity is produced to the places where electricity is needed. The widely discussed power lines. The local grid is currently not always very well structured, but generally manages well.

What do prices have to do with market stability? Are you mixing networks and prices?

Price stability means no inflation, right? Or am I really confusing something?

Price stability means no inflation, right? Or am I really mixing something up?

Ah, you mean stability as price stability and not technical stability. But that doesn’t change the fact that you have plenty of local providers. And it also doesn’t change that the state alone is responsible for 40% of the electricity price. And it doesn’t change that in summer we sometimes produce so much electricity that we have to sell it to other countries, including paying them. Likewise, the purchase prices for small providers are rather worse than for large ones. And we cannot influence the price of gas or oil either.