Good news for electricity customers 

By Torben Hvidsten, 2. March 2007

It is good news for the electricity market that the system management companies, Statnett in Norway and in Denmark, have just entered into an agreement in principle to build a fourth electricity connection between the hydropower based Norwegian electricity system and the wind power and thermal based Danish electricity system.

Yesterday announced that the two companies had entered into an agreement in principle, which paves the way for strengthened trading between Denmark and Norway. The new connection can be brought into use at the earliest in 2012 and is expected to cost approximately DKK 1.9 billion. The agreement however assumes the approval of the two companies’ boards and the countries' authorities. In Denmark this will be given by the Minister for Transport and Energy Flemming Hansen.

“The social benefits of the new connection will be in three main areas - a better functioning electricity market, greater supply security and cheaper system services”, says President and CEO Peder Ø. Andreasen,, in a press release.

The Danish Energy Association is very pleased that it now looks as though we will achieve a strengthened trade between Denmark and Norway.

“It is good news for energy companies, businesses and consumers that and Statnett are proceeding with the plan for a new cable between Denmark and Norway. The need for new electricity cables between the countries becomes greater and greater as we gradually utilize more and more renewable energy”, says Charlotte Søndergren, Danish Energy Association, who hopes that the Danish and Norwegian authorities will quickly give the project a green light.

“The time is also right to expand the electricity cables to the continent. Denmark must not stand still now. There is a strong need to look at all electricity connections both northwards and southwards and harmonize the regulations for trading across national boundaries throughout Northern Europe”, says Charlotte Søndergren.

The expansion of the electrical connections between Norway and Denmark with a fourth electricity cable means that capacity will increase from 1000 MW to 1600 MW. The three existing electricity connections between Norway and Denmark are owned by Statnett. The new cable will however be owned jointly by Statnett and The connection is expected to be connected to the 400 kV high voltage grids at Kristiansand in Norway and Tjele in Denmark.




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