Mutually beneficial? Germany´s energy transition and the internal electricity market

Notwithstanding widespread neglect of the European dimension of Germany´s energy transition, the Energiewende will further exacerbate current network fluctuations and the need for more cross-border power transfers in Europe. In order to establish the necessary infrastructure for absorbing large volumes of intermittent renewables like wind and solar power, the German energy transition therefore needs to be guided by an economic approach designed to prevent further fractures in the Internal Electricity Market. Constructive negotiations with neighbouring countries on market designs and price signals therefore will be important preconditions for a working Energiewende in Europe.