Subject to approval by Danish Minister for Climate, Energy and Building, Energinet.dk’s will invest DKK 100 million (approx. EUR 13.4 million) in two interconnection projects.
The two projects include electricity interconnector between the UK and Denmark and new interconnection with Germany.
Working together with the UK’s National Grid, Energinet.dk will connect the two countries’ electricity grid by means of a more than 740km subsea cable and land cable – Viking Link. In addition, the company is working with German TenneT to build a 400kV HV overhead line across the Danish-German border. South of the border, TenneT is expanding the power grid in Northern Germany. On the Danish side, Energinet.dk is proposing to build a new connection between the border and Endrup near Esbjerg.
According to the Danish transmission system operator, the country is set to make billions from the two electricity interconnections.
“Viking Link and a new interconnection with Germany will be of great socio-economic benefit to Denmark. The future green electricity market will be much more cross-border, and with new connections, Danish power stations and wind turbine owners will be able to sell more electricity and command higher prices – by better exploiting wind power and exporting more in windier periods, for example,” said Torben Glar Nielsen , Executive Vice President, CTO at Energinet.dk.
Consumers are also set to benefit. Denmark will profit from its cross-border trade in electricity, as will Energinet.dk’s consumers in the form of lower tariffs. “The connections make sound business sense for Denmark and the green transition,” Nielsen said.
In total, the Danish level of investment will be in the region of DKK 11 billion. “While the figure is high, Denmark also stands to earn billions of kroner in profit,” Nielsen pointed out.
It is now up to the Minister to assess the projects. Ministerial approval is required for Energinet.dk’s investment of over DKK 100 million, the company concluded.