The transmission system operator 50Hertz welcomes the decision of the EU Commission to exempt the joint German-Danish Baltic Sea project KF CGS from the current regulation, according to which at least 70 percent of the interconnector capacity between European countries must be made available for cross-border electricity trading. The exemption is initially limited to ten years and includes an extension option that limits the total period of validity of the regulation to a maximum of 25 years.
The derogation now granted by the EU Commission specifically provides that after deducting the (previous day's) forecast for the wind feed-in of the participating offshore wind farms Baltic 1, Baltic 2 and Kriegers Flak Denmark, the remaining capacity is to be made available to the market for cross-border electricity trade between Germany and Denmark.
According to Stefan Kapferer, CEO of 50Hertz, the EU decision is a particularly strong signal for the achievement of the European climate targets and for enabling innovative and new types of power line projects: “The EU decision shows that projects such as KF CGS, which was planned more than ten years ago and has now been inaugurated, are possible, although the legal framework has changed in the course of the project's progress as a result of the Clean Energy Package with the 70 percent rule. This means that the climate-friendly, CO2-free power generation of the offshore wind farms Kriegers Flak, Baltic 1 and Baltic 2 can be fully utilized, as only the remaining line capacity is used for electricity trading.” Overall it is now important for the EU to establish a general, stable and reliable legal framework for future hybrid interconnector projects, because the KF CGS project, the world's first interconnector of its kind, will certainly not be the last, Kapferer states.
The EU decision has also been positively received by the German Federal Ministry for Economic Affairs and Energy: “Offshore wind energy can make a decisive contribution to making the EU climate-neutral by 2050. Hybrid projects such as the Combined Grid Solution are particularly innovative solutions with a twofold effect - on the one hand, the power lines transport wind power from the offshore wind farms to the consumers, and on the other hand, they enable additional cross-border trade in times when there is no wind. It is good that the operators can use the power line in this sense thanks to the derogation granted by the European Commission. However, it is important for the future to obtain clear European regulations for hybrid projects. The aim must be to enable effective grid access for offshore wind power from hybrid projects,” said State Secretary Andreas Feicht.
Søren Dupont Kristensen, CEO Energinet Electricity System Operator: “It is very positive that the EU accepts that Kriegers Flak Combined Grid Solution is a unique project that operates under very different conditions than traditional interconnectors. We are very pleased that the Commission has given a 10 years derogation with possibility of further 15 years of derogation. The legislation which will ensure that at least 70 percent of the capacity of an interconnector always is available to the electricity market is incompatible with the design of this groundbreaking KF CGS project, which combines offshore wind farms with an interconnector to create maximum utilization of the cables and thereby an efficient and cheaper green transition for society.”
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