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Incremental Capacity Process 2023

Incremental processes concern market-based expansion of network capacity: additional capacity at existing Interconnection Points or creation of new Interconnection Points, in both cases realized through investments that are supported by market commitments. The incremental process is complementary to network development planning (Energinet Investment Plan), as it adds the market perspective concerning readiness to commit on a long-term basis to the realisation of specific infrastructure.

In accordance with Commission regulation (EU) 2017/459, adjacent TSOs on each side of Interconnection Points linking entry-exit zones will cooperate during the incremental process. The incremental process is started every second year. The incremental process is kicked-off by the yearly auctions, which are held first Monday in July each year. The incremental process consists of the following phases:

  • Non-binding demand indications, submitted latest 28 August 2023.
  • Market demand assessment report (DAR), that will conclude whether the conditions are met to envisage the next steps (and therefore a potential network expansion).
  • Design phase, including market consultation and national regulatory agency (NRA) approval of the project(s).
  • Publication of the binding project notice.
  • Binding allocation of incremental capacity, whereby binding bids for capacity are eventually awarded before a final investment decision (FID) is taken on the necessary investments.

 

3 July 2023

28 August 2023

23 October 2023

Yearly Capacity Auctions

Deadline submission of non-binding demand indications

Publication of DAR

First Monday of July

8 weeks after Yearly Capacity Auction start

16 weeks after Yearly Capacity Auction start

 

Step 1 – Non-binding demand indications

Parties interested in incremental capacity can submit non-binding demand indications no later than 28 August 2023.

Non-binding demand indications can be submitted using the non-binding demand indications templates:

Non-binding demand indications

Download this form and send it to gasinfo@energinet.dk with cc to LTK@energinet.dk

 

Step 2 – Demand Assessment Reports (DAR)

The Demand Assessment Reports will be published in October.

For Ellund and Faxe, the incremental process will apply. , For other points, Energinet will apply the Incremental Capacity process to the extent reasonable, but with freedom to take unique

characteristics of the points.

Energinet also invites the market to inform us, in case a need is seen for new or expanded capacity in specific locations in the Danish gas system, towards the Joint Exit Zone (i.e., for new end-user demand in Denmark).

The findings in the Demand Assessment Report will figure in Energinet’s Long-term Development Plan (LDP) which will be published in 2024. The LDP is a refined plan to create overview and transparency of Energinet’s future potential investments and with the intention to increase involvement from stakeholders and the public.

 

 

 

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