Background

The EU is currently reviewing whether to split the energy bidding zones for Germany and France to improve market efficiency and grid stability. A bidding zone review was initiated in mid-2022, with ENTSO-E's final recommendation expected in spring 2025. The member states have up to 6 month to reach an agreement, if an agreement can not be reached to commission has 6 months to decide if the zones will be split. Normally it takes up to 24 months after a decision for the split to be implemented.

Resolution Criteria

This market will resolve YES if either:

• Germany's single bidding zone is split into two or more zones by December 31, 2029

• France's single bidding zone is split into two or more zones by December 31, 2029

The market will resolve NO if both countries maintain single bidding zones through December 31, 2029.