Energinet is pressing through the local markets

Energinet, which deals in transmission systems, is preparing to establish local and reliable markets in some areas of Denmark. The company intends on the utilization of mega wind turbines and solar resources to provide electricity to meet the demands of the people. The company is part of a primary pilot project that happened on the island of Lolland. This project involved Danski Energi, Cerius, HOFOR, and Centrica. All these utilities participated in the success of the project. Energinet confirmed that the island can now generate more electricity to sustain the residents and some for transmission to other areas.

The head of flexibility and systems operation at Energinet, Thomas Dalgas Fechtenburg, stated that they initiated this local market to ensure that the electricity utilities supply affordable electricity. On the other hand, Energinet can decide to halt the operations of electricity utilities when there is no rivalry to promote the affordability of the electricity bids. Last year, Energinet mapped the areas where electricity production is higher than consumption, especially if it is generated from solar and wind resources. This move was to ensure they can locate probable sources of power in cases of emergency and transmit it to where it is needed. Energinet stated that scaling up the local production electricity grid can be more expensive than paying for the local market’s existing excesses.

Fechtenburg explained that the local flexibility markets should serve as operating systems for the electricity grids until they have been widened to sustain the green power every hour. The company noted that it is easier and cheaper to establish a solar park than to expand the grid. This concept is what has motivated the expansion of the Lolland project to the other regions of the country. The pilot project expanded through the local flexibility market with 11 sites opening up and establishing about 50MW of power in the process. This capacity is equivalent to 10% of the total consumption on the island. Energinet confirmed that this value is the potential electricity production of the project is explored on a large scale.

Energinet explained that Lolland has managed to establish a subordinate electricity network without causing downtime. More local activations will kick off in the future, and the capacity of megawatts that can be produced analyzed by the company. Energinet told the Danish energy regulator Forsyningstilsynet that it should consider this new market alignment to assist in the development of the program. The company is hopeful that it can achieve the energy production capacity to meet the entire country’s demands.