About PSO and R & D

As the transmission system operator, Energinet.dk must ensure that research and development (R&D) is conducted for the benefit of Danish society and the electricity sector.

Research and development and the PSO programme

The Danish Electricity Supply Act (Elforsyningsloven), the Danish Act on Energinet Danmark (Lov om Energinet Danmark) and the order concerning system operator responsibility (Systemansvarsbekendtgørelsen) together lay down the framework for Energinet.dk’s activities in this area.

Financing R&D

Energinet.dk finances its R&D activities on the basis of tariffs charged for the transmission of electricity in the high-voltage grid and natural gas in the natural gas grid. Energinet.dk ensures that R&D within the electricity system is paid for by electricity consumers, while similar R&D within the natural gas system is paid for by gas consumers.

Energinet.dk funds R&D in environmentally-friendly electricity generation technologies by means of a special PSO tariff of DKK 0.004 per kWh, which all electricity consumers pay via their electricity bills. (PSO stands for Public Service Obligations).

Energinet.dk’s other R&D activities aimed at developing the power system and ensuring security of supply are financed via Energinet.dk’s normal electricity transmission tariffs. Similarly, Energinet.dk’s R&D activities concerning the natural gas system are financed via Energinet.dk’s normal gas transfer tariffs.

Energinet.dk conducts a number of R&D activities itself, but R&D is generally carried out by external collaboration partners.

ForskEL programme

Each year, and subject to the approval of the Danish Minister for Climate and Energy, Energinet.dk provides PSO funds for R&D in environmentally-friendly electricity generation technologies. This is called the ForskEL programme. During the 2005-2008 period, a maximum of DKK 130 million was granted each year.

The focus areas are adjusted from one year to the next and can be seen from the annual calls. Energinet.dk administers the ForskEL programme, but does not participate in R&D activities itself. The ForskEL programme is carefully coordinated with the other Danish energy research programmes.

Energinet.dk publishes an annual report on the ForskEL activities.

A list of the focus areas to which funding has been granted since the start of the programme in 1998 can be seen here.

ForskIN programme

Energinet.dk is obliged to conduct R&D into the electricity supply system, into strengthening the security of supply, integrating increasing volumes of renewable energy and other important activities for the high-voltage system. Energinet.dk fulfils this obligation via its tenders or in collaboration with external partners. Energinet.dk also supports the Centre for Electric Technology at the Ørsted Institute at the Technical University of Denmark.

Furthermore, Energinet.dk participates in a large number of international collaboration projects aimed at promoting R&D into energy and electricity systems. Energinet.dk participates in projects under the IEA (International Energy Agency), Nordel, the EU’s technology platforms, EU ERA.NET, Cigré, Eulectric, the UCTE and others. Moreover, Energinet.dk participates in a number of international standardisation projects.

ForskNG programme

Energinet.dk is responsible for developing safety and the security of supply of the Danish natural gas transmission system and therefore funds internal and external PSO projects. Energinet.dk participates in international collaboration aimed at developing the natural gas systems. Moreover, Energinet.dk supports R&D projects concerning the use of the natural gas system for the transport of other gases, eg hydrogen and upgraded biogas.