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The European Union’s efforts to connect the bloc’s electricity networks isn’t lowering average prices as intended, according to a research group in Brussels.
Market coupling doesn’t reduce average wholesale power prices, Georg Zachmann, a research fellow at the Bruegel institute said in a study published on its website. The Germany- Nordic market was cited as an exception, where connecting those nations from 2008 led to “significantly” lower prices.
“Europe has been fighting to introduce an internal market and one of the reasons for doing so was creating larger market zones which would bring down electricity prices,” he said today by phone from Berlin.
The EU has set a target to complete market coupling by 2015, allowing power to flow to areas where prices are higher.
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