Netherlands creates offshore power trading zone
A new bidding zone aims to ease grid congestion and support 1.8 GW UK–Netherlands interconnector and offshore wind development.
Image for illustrative purposes
The Netherlands: The Dutch government has decided to create a new offshore electricity bidding zone to support the planned LionLink hybrid interconnector and the connected offshore wind project at Nederwiek 3.
LionLink is a proposed 1.8 GW link between the Netherlands and the United Kingdom. It is designed to combine cross-border electricity trading with connections for offshore wind farms. The project is being developed by TenneT as part of the country’s wider North Sea Wind Energy Infrastructure Plan.
Officials expect ongoing congestion between the offshore platform serving Nederwiek 3 and the onshore Dutch grid. Under EU electricity market rules, bidding zones cannot include areas with structural congestion. This has led to the decision to introduce a separate offshore bidding zone so the project can move forward.
The new zone will include the Nederwiek 3 wind farms and will operate with its own electricity pricing, separate from the main Dutch market. The government anticipates that prices in this offshore zone will generally be lower, mainly due to the lack of local demand.
This could weaken the financial outlook for the Nederwiek 3 wind farms. However, the government has said any additional support needed will be handled through subsidies within the existing offshore wind budget.
The move is intended to keep LionLink on schedule, reduce pressure on limited grid connection points, and contribute to the long-term goal of a more integrated offshore electricity network in the North Sea.
The Netherlands will inform the European Commission, ACER, and other EU member states in line with regulatory requirements.
Source: TGS 4C
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#Cross Border Electricity Trade#LionLink#North Sea#offshore wind#Tennet#The Netherlands#UK