Energy across borders
Energy integration across Europe’s borders has been on the Danish and European agenda for a long time. Cross-country cooperation is becoming increasingly important as the share of renewable energy is becoming even greater, and the high level of security of supply must be maintained.
For Energinet, 2016 has largely been characterised by cross-border cooperation on major projects aimed at investigating or building electricity and gas interconnections to the UK, the Netherlands, Germany and Poland.
At the same time, the process of streamlining the security of supply through the establishment of Nordic RSC (Regional Security Coordinator), which is a cooperation between the Nordic countries’ electricity TSOs, has been speeded up. The cooperation is based in Copenhagen and managed by Energinet.
Electricity and gas innovations
2016 also saw the launch of a new electricity market model (the wholesale model). An ideal cooperation between 130 market players (grid companies, electricity suppliers and IT suppliers). The major project proved its success on 1 April with the implementation of an upgraded DataHub and new market procedures.
The new market model is to create a basis for improved competition, more innovation and added incentive for flexible consumption supporting the security of supply in an energy system with a high share of renewable energy.
For gas, 2016 also offered significant innovation in the form of Denmark’s first biogas upgrading plant which is connected directly to the transmission grid. On 7 July, the first biogas entered the natural gas grid, and this can be regarded as part of the story about green gases experiencing growth (in 2016, biogas production increased by 43%).
2016 was a year of organisational changes. Energinet took over DONG Energy’s gas distribution grid following the IPO of DONG Energy to ensure critical infrastructure remains in public hands.
In 2016, it was also decided that our administration of statutory subsidies for environmentally friendly energy production will move to Esbjerg, and is expected to be part of the Danish Energy Agency from January 2018.
Energinet’s revenue in 2016 was DKK 13 billion, and the net loss for the year after tax was DKK 143 million, which is satisfactory and in line with the expectations for 2016.
Energinet’s economy is based on a self-financing principle which only allows the company to factor in costs incurred plus the return on equity. The company is thus not required to generate a profit, but must create value for society.
The annual report was considered by Energinet’s Supervisory Board on 16 March 2017 and will be submitted to the Danish Minister for Energy, Utilities and Climate for approval and to Energinet’s Stakeholder Forum for comments.
Read the report here