Submission 367
LOCATIONAL VALUE AND REVENUE REDISTRIBUTION FOR WIND AND SOLAR: A NODAL DEEP DIVE INTO THE GERMAN ELECTRICITY MARKET
04 GIW26-367
Presented by: John Joe Padua
Germany’s uniform DE–LU bidding zone masks large internal congestion and therefore gives renewable generators no locational
price signal.We quantify how moving from zonal to nodal pricing would redistribute market revenue across the existing German
wind and solar fleet. A full-year hourly DC optimal power flow for 2025 is solved on a 541-bus transmission model and compared
with an otherwise identical copper-plate zonal case. Across the 144.7 GW of wind and solar analysed, annual market revenue
falls by EUR 3.10 billion (24.3%). The change is dominated by locational repricing (EUR 3.83 billion), while the dispatchvolume
component offsets EUR 0.73 billion because most output reductions occur at negative local prices. Offshore wind is most
exposed, followed by onshore wind, whereas photovoltaic effects are smaller in aggregate and largely redistribute north to south.
Losses are highly concentrated: 80% of gross losses fall on 18% of capacity, while the median onshore cluster gains. The results
show that nodal pricing creates a strong asset-level redistribution whose incidence depends materially on renewable-support
design.