The so-called BritNed link will involve investments of E600 million and is intended to enhance energy diversity and the security of energy supply to both the UK and the Netherlands. It will also provide greater opportunities for BritNed’s customers to participate in European electricity markets.
TenneT revealed that, once regulatory approval has been granted, construction of the interconnector is due to start in summer 2007. The underwater link is expected to be commissioned by late 2010.
German construction group Siemens has been awarded a contract to construct two high-voltage direct current converter stations at the Isle of Grain in Kent and Maasvlakte near Rotterdam. In addition, ABB has been awarded a subsea cable contract to construct the HDVC current cables that will be laid beneath the North Sea.
TenneT said that, once the link is completed, electricity will be able to flow in both directions and is expected to be determined by power prices in the Netherlands and the UK. This will support the European Commission’s desire for greater interconnection and market transparency, the company said.
Mel Kroon, managing director of TenneT, said: Integrating the electricity markets of the various countries is the best way to create a strong European market characterized by transparency, sufficient liquidity and good pricing. The goal is a single market area in northwestern Europe in which market parties will not face restrictions.
APX Group, which provides exchange services for the wholesale trading of gas and power across northwest Europe, will develop a trading solution for the new interconnector. The group will develop a market coupling, or exchange-to-exchange method, for a certain part of the cable capacity, linking their spot markets in UK and the Netherlands.
