DK1-DE/LU Minimum capacities from Joint Declaration Linette Linnemann Nielsen, Senior Economist

1 EXPORT CAPACITY FROM DK1 TO DE

70 Joint Declaration is implemented

60

50

40

30 % of of % NTC

20

10

0 jul-2014 jul-2015 jul-2016 jul-2017 jul-2018 jan-2014 jan-2015 jan-2016 jan-2017 jan-2018 sep-2014 sep-2015 sep-2016 sep-2017 nov-2014 nov-2015 nov-2016 nov-2017 maj-2014 maj-2015 maj-2016 maj-2017 maj-2018 mar-2014 mar-2015 mar-2016 mar-2017 mar-2018

Export capacity

2 TSO DG ENERGY POLITICAL WORKPLAN DEVELOPMENT NEGOTAITION

As a response to Common and NordEnergi’s letter, DG The Danish Ministry of TenneT workplan is Energy invited all involved Energy, Utilities and Climate presented in 2015 parties to a meeting in the and German Federal spring of 2016. Ministry for Economic Affairs and Energy The plan is continously negotiates a political updated. A follow-up meeting was arranged in the fall of 2016. agreement in 2017 Joint Declaration IS A POLITICAL AGREEMENT Which will secure more capacity for the market THE MINIMUM CAPACITY INCREASES OVER TIME

1200

1000

800 The capacity has to be secured in

both import and export direction 600 for every hour.

400 MW in every hour every in MW

200

0 jul-17 aug-17 sep-17 okt-17 nov-17 2018 Q1 + Q3 + 2020 Q2 2019Q4 2019

Minimum capacity

5 THE AMOUNT OF COUNTERTRADE If day-ahead prices are higher in , and a full export flow from DK1. If flow decreases, the MWh for countertrade decreases. MWh

Minimum capacity

Mwh for countertrade

MWh for countertrade

Day-ahead NTC

Time

Aktørmøde DK1-DE, Erritsø 3/4/2017 6 PHYSICAL CONGESTIONS ARE COUNTERTRADED

Depending on the flow, Energinet and TenneT increase and decrease the power on either side of the congestion after the day-ahead market.

Energinet uses “special regulation” in DK1 and DK2.

TenneT uses the German intraday market.

7 7 REQUESTED COUNTERTRADED IN DK1

Energinet ensures transparency towards the 350 000 market by publishing: 300 000

The amount of countertrade requested: 250 000 https://energinet.dk/El/Nyheder-som-systemydelser/Data-for- specialregulering 200 000

MWh 150 000 Monthly average prices for countertrade: https://energinet.dk/El/Indkoeb-og-udbud-af-systemydelser/Pris- 100 000 paa-reserver 50 000

The final impact assessment prepared by Energinet - and TenneT: https://en.energinet.dk/About-our- news/News/2017/12/01/Energinet-and-TenneT-publish-final- Joint Declaration countertrade Regular countertrade impact-assessment-of-different-countertrade-models-for-DK1-DE Regular countertrade is countertrade requested from TenneT, which is not related to the minimum capacities.

8 The solution is a stronger grid And the short term solutions shall never hinder this development PLANNED GRID EXPANSIONS

West coast line Under Planning East coast line Expected in operation 2022 Under construction Kriegers Flak In operation in 2020 Under construction In operation in 2019

10 LATEST DEVELOPMENTS In the spring of 2018, the EU Commission Directorate General for Competition opened an investigation into German grid operator TenneT for limiting cross-border electricity capacity with .

At the same time the Commission invited comments on TenneT’s proposed commitments to increase cross-border capacity with Denmark.

The result form the consultation is still unknown.