IEEE Power & Energy Magazine - November/December 2021 - 116

Peter Markussen
electricity market
a key enabler for energy transmission
T
116
THE RESOURCES FOR VARIABLE
renewables are often located far from
consumption, and production is dependent
on the sun and wind. The expansion
and development of the electricity
transmission grid offer necessary and
efficient solutions to ensure flexibility
between production and demand and
security of supply toward a 100% green
electricity system. The list of studies
from authorities, universities, and other
stakeholders supporting this view is
long, connecting demand and production
and facilitating flexibility between
diversified regional electricity systems.
At the same time, the development
of the transmission grid over long distances
and between countries and regions
is moving slowly in large parts of
the world, not reflecting the positive assessment
of the benefits. Often, the argument
is put forward that cross-border
and regional transmission grid development
requires joint planning and an authoritative
decision framework.
In my view, the development of
cross-border and regional transmission
lines can be accelerated by establishing
or improving an existing electricity
market to obtain the identified benefits.
The electricity transmission grid
is the " hardware " that facilitates the
green transition, while the electricity
market is the " software " that makes it
happen. Based on the Danish and European
experience, creating a common
electricity market is one of the most
Digital Object Identifier 10.1109/MPE.2021.3104134
Date of current version: 18 October 2021
ieee power & energy magazine
important prerequisites for the efficient
and accelerated development of the
transmission grid. It facilitates efficient
planning and secures the realization of
the resulting benefits-and it is just
as important in preventing overinvestment
in the grid.
Common Electricity
Markets as a Driver
for Transmission Grid
Expansion in Europe
Before the establishment of the common
electricity market, long-distance
transmission solutions were often commissioned
based on the security of supply
and as an alternative to local new
thermal power. With the electricity market,
a price signal is provided and the
ability to calculate the alternative benefits
and reveal the need for new grid
investments in terms of location and
capacity is facilitated.
The Nordic electricity market was
established in 1992-2000 and led to the
planning and implementation of new
transmission lines. The same happened
after the start of the common European
electricity market after 2000. Agreements
for new interconnectors among
the United Kingdom, Nordic countries,
and the continent were made. These
links have either been commissioned
or are under construction.
For more than 50 years, the European
transmission system operators
have cooperated on both the operation
and planning of the electricity system.
The accelerated expansion of the transmission
grid in Europe over the last 20
years has also been driven by this long
history of cooperation combined with
the European Union Commission and
its regulation of energy sector planning
and, most importantly, by the European
Network of Transmission System Operators
for Electricity's 10-year network
planning process. European regulation
today underpins the cross-national planning
process by developing methodologies
used to identify and promote the
most beneficial projects. The process is
based on detailed power system leastcost
modeling, socioeconomic benefits,
and the projects' contributions to resource
adequacy. However, any decision
to expand the transmission network
is still taken nationally.
Our Danish Experience
Denmark has a long history of exchanging
electricity with neighboring countries.
The first connection to Sweden was
established in 1915, and the first highvoltage
(HV) dc connection to Norway
was established in 1976, linking different
synchronous areas. This cable is still
in operation. For Energinet, the Danish
transmission system operator, the common
electricity market has played an important
role in the company's expansion
of the transmission grid.
Today, Denmark has a peak demand of
6 GW but approximately 7 GW of transmission
capacity with four neighboring
countries. Energinet has established half
of the cross-border capacity after 2000.
A new 1,400-MW HVdc interconnector
(continued on p. 113)
november/december 2021
in my view
IEEE Power & Energy Magazine - November/December 2021

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