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Exploring Virtual Hubs in Energy Markets
This chapter delves into the concept of virtual hubs as proposed by the EU's ACER to enhance power liquidity in energy markets. It compares the experiences of the Nordic region and the U.S. in implementing these pricing structures, while examining the concentration of liquidity in Germany and its ramifications for other European markets. The discussion also considers the implications of splitting the German bidding zone and the complexities it introduces to the future of energy trading.