Together with the German transmission system operator, 50Hertz, Energinet.dk will build an interconnection in the Baltic Sea.
The Danish Minister for Energy, Utilities and Climate, Lars Christian Lilleholt, has approved Energinet.dk's application for investment in a new interconnection between the Eastern Danish and German electricity grids via the Baltic Sea.
Pursuant to the Danish Act on Energinet.dk (Lov om Energinet.dk), any investments in the transmission grid exceeding DKK 100 million must be approved by the Minister.
- The Minister's approval is important and helps create the future, cross-border electricity market, where much more electricity must be traded back and forth across borders. On the one hand, Danish power stations and wind turbine owners can sell more electricity to German consumers and make a profit on it. On the other hand, Danish consumers can buy electricity in Germany, for example when the wind is not blowing and the wind turbines are not spinning. This makes the green transition less expensive and more effective, said Torben Glar Nielsen, Executive Vice President, CTO, at Energinet.dk.
The connection will have a capacity of 400 megawatt (MW) and is a joint project between Energinet.dk and the German transmission system operator 50Hertz. It is the world's first interconnection between two countries that also connects two countries' offshore wind farms.
The Danish offshore wind farm, Kriegers Flak, which the Folketing decided to erect in the Baltic Sea based on the energy agreement from 2012, will be connected to the submarine cables, which run from the German side to the two German offshore wind farms Baltic 1 and Baltic 2.
The unique Combined Grid Solution (CGS) can thus not only transport electricity from three offshore wind farms to consumers in the two countries, it can also export electricity from power stations, onshore wind turbines, solar cells, etc. to consumers in the other country.
As the interconnection connects two different electricity areas, it is necessary to build a facility in Bentwisch which can synchronise electricity from the Eastern Danish and German systems.
The CGS connection improves the security of supply in Eastern Denmark, as it will be possible to import more electricity, for example in periods with no wind or in periods with breakdown or failure in the Danish electricity grid.
With the approval, the Danish-German project can start entering contracts with suppliers. The CGS connection must be ready by the end of 2018.
Energinet.dk has previously been given the minister's approval to invest in the landing facilities of the Kriegers Flak offshore wind farm. However, a permit from the Danish authorities is still needed, before it can be decided where to land the cable from the offshore wind farm and where to build the necessary onshore facilities.
The CGS connection is a socio-economic benefit to both countries, as it will be possible to buy and sell more electricity across borders.
The total budget is EUR 320 million
The European Commission has appointed Kriegers Flak - CGS as an important infrastructure project - Project of Common Interest (PCI) - and the EU has declared to fund the project with up to EUR 150 million from the European Energy Programme for Recovery.