Denmark Proposes Bidding Zone Changes Around Bornholm Energy Island

October 27, 2023, by Adnan Memija

The Danish Energy Agency (DEA) has opened consultations on an amended electricity market bidding zone configuration around Bornholm Energy Island.

This move follows after the Danish transmission system operator (TSO), Energinet, identified a structural congestion in the electricity transmission network that connects Bornholm Energy Island to Zealand and Germany.

Following the identification of the structural congestion, the DEA said it notified the European Commission and the Agency for the Cooperation of Energy Regulators (DEA) about the decision to amend the bidding zone configuration in Denmark.

According to the DEA, Denmark is required to conduct a consultation with relevant stakeholders regarding the amendment of the bidding zone configuration.

With today’s notice, the DEA has decided to open a consultation and comments period which can be provided until November 16, 2023.

After the consultation period, the DEA will review the comments and expects that Denmark will finalise the decision on establishing the new bidding zone by the end of 2023.

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Bornholm Energy Island, located in the Danish sector of the Baltic Sea, will facilitate connecting at least 3 GW of offshore wind generation capacity to the grid by the early 2030s. The electricity will then be transported via new grid connections to Germany (2 GW) and to the Danish mainland (1.2 GW).

The TSOs 50Hertz and Energinet agreed in advance that they would each assume half of the infrastructure costs of the project. In return, the TSOs will share the congestion proceeds from the respective lines to Germany and Denmark and will each receive ownership of the (inter)connector to the respective mainland.