1、11 March 2025Allianz ResearchPlug,baby,plug:Unlocking Europes electricity marketAllianz Research2Content Page 3-4 Executive SummaryPage 5-8 Europes electricity market:a bottleneck for transition and competitiveness?Page 9-10 Powering progress:The investment imperative for a resilient gridPage 11-17

2、The economic cost of an unreliable electricity gridPage 18-22 Optimizing the energy transition:Cutting costs through smart solutions Page 23-26 From tensions to solutions:Addressing price disparities in market integration Page 27-28 The grid of tomorrow:Financing options and market solutionsPage 16-

3、17 Implications for electricity prices 11 March 2025 Europes electricity infrastructure and market design disparities have become major obstacles to the green transition.Delays in grid development have created a backlog of over 800 GW of wind and solar capacity awaiting connection,nearly double the

4、current supply.Meanwhile,persistently high electricity prices are undermining industrial competitiveness and burdening consumers.Without urgent grid investments and modernization,Europe risks falling short of its 2050 net-zero target,which requires intermittent renewables to supply 82%of the contine

5、nts electricity.The lack of grid flexibility exacerbates intraday price volatility,with high electricity prices during peak demand and negative prices during off-peak hours.In Germany alone,compensation for renewables reached EUR20.9bn in 2024.Grid congestion costs are still lower(EUR2.5bn in 2019)b

6、ut are projected to surge to EUR12.3bn by 2030 and EUR56.7bn by 2040 without upgrades.These costs ultimately impact electricity prices,with potential increases of+22%by 2030 and up to+103%by 2040 under a business-as-usual(BAU)scenario.However,the economic fallout extends beyond electricity prices,th