Denmark Reveals New Bornholm Bidding Zone

December 18, 2023, by Adnan Memija

The Danish Energy Agency (DEA) is establishing a new bidding zone that will enter into force with the commissioning of Bornholm Energy Island, the agency announced on 18 December.

The bidding zone is being established based on a structural congestion identified by Energinet, the Danish transmission system operator (TSO), in the electricity transmission grid that will connect Bornholm Energy Island with Zealand and Germany.

In the report on structural congestion in DK2, Energinet showed that congestions occur structurally between Bornholm Energy Island and Zealand.

This led to the creation of the DK3 area consisting of the Bornholm Energy Island and the cable connection points, DEA said.

In addition, the DEA suggests that DK3 should include both Bornholm Energy Island and the rest of Bornholm.

In connection with the establishment of the new bidding zone, Denmark has been in dialogue with relevant member states and has consulted stakeholders on the decision to establish a new bidding zone, according to the agency.

DEA notified the European Commission and the Agency for the Cooperation of Energy Regulators (ACER) on 15 December that Denmark has decided to establish the new bidding zone DK3 at Energiø Bornholm.

The new bidding zone will enter into force when Bornholm Energy Island is in operation, currently scheduled for the end of 2030.

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. The electricity will then be transported via new grid connections to Germany (2 GW) and 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.