Denmark will facilitate a new electricity market bidding zone, supposed to cover a planned renewable energy (RE) generation cluster around the island Bornholm, the Danish Energy Agency said on Monday. The island is located in the Baltic Sea.
The Energy Island Bornholm will have two fields of offshore wind turbines. A high-voltage (HVDC) converter station located on Bornholm, and cables connecting the wind farm to both Zealand in Denmark – and Germany.
Bornholm is currently part of the ‘DK2 bidding zone’ which covers eastern Denmark. However, there would possibly be a ‘structural congestion on the grid connection’ from the energy island to Zealand, according to the Danish Energy Agency.
This made it necessary to create a new DK3 area, comprising the Bornholm Energy Island and the cable connection points. The Agency then proposed that DK3 should contain both Bornholm Energy Island and the rest of Bornholm, it said in a consultation document.
“The electricity price on Bornholm will virtually be the same if Bornholm continues to be part of DK2, compared to Bornholm being a part of DK3 together with Bornholm Energy Island,” the document said.
The new bidding zone will become effective once the Bornholm Energy Island starts operations. Which is currently not scheduled until the end of 2030.
Source: Nasdaq