EnergyWatch

Danish Energy Regulatory Authority drops Danish-Norwegian electricity deal

The Danish Energy Regulatory Authority has terminated the agreement for Norwegian reserve power prematurely. This is a setback for Nordic energy collaboration says Statnett, Norway's energy system operator. The Danish Energy Association calls it a win for the free market.

Photo: Atlas Copco

From the new year, the Skagerrak 4 connection will open up freely between Denmark and Norway. Since the expanded electricity connector began operating in 2014, 100 of the 700 MW have been reserved for the exchange of so-called secondary reserves as part of a five-year deal between the Danish and Norwegian system operators. But now the Danish Energy Regulatory Authority (DERA) has terminated the reservation two years before the expiry date, as it confirms in a press release.

"There is a fundamental rule in European and Danish law that reservations must be avoided because they interfere with the free market. This rule means that only considerations such as security of supply or significant public utility can invoke reservations," says DERA Chairman Uffe Bundgaard-Jørgensen.

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