Energinet invests in the next level of integration with international markets
Current International Initiatives
One of the ways Energinet supports a healthy and competitive Danish gas market is by investing in the next level of integration with our neighboring markets. Learn more about our current initiatives below and feel free to contact us for additional information:
- Balance Zone Sweden
Balance Zone Sweden
New Supply Corridor
Energinet is actively pursuing an expansion of our market capabilities by working to establish a gas pipeline that would connect Denmark, Norway and Poland. The aim of the Baltic Pipe project is to create a regional supply corridor for gas to the EU gas market, which would strenghten competition in the region and achieve three important goals:
• Integration of the Danish-Swedish and Polish gas markets through supply competition and bidirectional trading aimed at ensuring increased price convergence.
• A strengthening of the regional security of supply by providing access to Norwegian gas for the Danish-Swedish and Polish gas markets.
• Increase the load-factor of existing infrastructure in order to reduce tariffs to the benefit of users of the infrastructure.
The Baltic Pipe project is considered a project of “common interest” signifying that the project is essential for completing the European internal energy market and for reaching the EU's energy policy objectives of affordable, secure and sustainable energy.
It is vital for the realisation of the Baltic Pipe project that there is sufficient market demand for the transport route envisioned by the participating nations. To that end, Energinet and GAZ-SYSTEM S.A., among other options, envisions an open season process which invites shippers to provide long-term investment signals before final investement decision is taken.
For harmonizing the process for the development of incremental capacity, new rules for incremental capacity have been included in the Network Code on Capacity Allocation Mechanism (CAM NC).
The newly introduced incremental process foresees several phases including certain requirements that need to be fulfilled, before an incremental project can be initiated and new capacity be built.
The incremental process starts with the demand assessment phase that begins with the market demand assessment by the Transmission System Operators (TSOs) after the annual yearly capacity auction. At the beginning of this phase network users can submit non-binding demand indications within eight weeks after the start of the annual yearly capacity auction.
Based on these non-binding demand indications, TSO’s between 2 adjacent entry-exit systems must perform joint Demand Assessment Reports (DAR’s), indicating the result of the non-binding demand indications. If the outcome of the DAR shows demand for more capacity between two systems, the process continues with the design phase, with the possibility to offer incremental capacity in the annual auction the coming year. If the outcome of the DAR does not show demand for incremental capacity, the process ends.
The incremental process must start in odd-numbered years, and has run the for first time in 2017, without any demand indications. The next time the incremental process will start, will be after the annual auctions in 2019.