This master thesis aims to present the impact of the possible splitting of the German and Austrian electricity market. In the work, fundamental review of both electricity markets is shown with mentioning of their main characteristics. As the German and Austrian electricity market currently act as one bidding zone, there are no restrictions on cross-border transmission capacity between them. As a result of excessive commercial flows occurring between these two bidding zones, unplanned flows and network congestions are being shown. This work contains the causes and solutions for the problems mentioned. In addition, expert opinion and technical articles discussing solving of the above issues with market splitting are presented. Since the problem as a result of combined trading zones is being present for some time, the thesis also describes the currently used solutions. To examine the impact on wholesale electricity prices of market splitting of the German and Austria trading areas, scenarios with various cross-border transmission capacities on the German-Austrian border were carried out with EPSI fundamental model. The results are presented for the German and Austrian bidding zone, as well as for trading areas of Belgium, France, Switzerland and the Netherlands.
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