Energinet reaps major grid congestion revenue

The Danish TSO has made DKK 4bn in network congestion income so far this year – more than twice the normal annual level.
Photo: Thomas Borberg
Photo: Thomas Borberg
BY VIKTOR BRANDT KÆRGAARD, TRANSLATED BY DANIEL FRANK CHRISTENSEN

These days, Danish state-owned transmission system operator Energinet is pulling in serious revenue from grid congestion – money made when system operators sell cross-zonal capacity – having already hit DKK 4bn (EUR 540m) so far this year.

For comparison, the normal level for an entire year is DKK 600-900m. Energinet’s congestion revenue from full-year 2021 came to DKK 2.4bn, reports business daily Børsen.

However, the TSO will not be allowed to keep the money on the company balance because EU rules require such income to be reinvested and used for grid upkeep in the very areas where network congestion arises.

”We’re facing significant investments in reinforcing the electrical grid. So, of course we are considering whether to use the some of the money to stabilize or reduce prices. It’s a consideration we are now assessing, but no decision has yet been made,” says Energinet Vice President of Markets Jeppe Danø to the media.

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