Denmark Establishes New Bidding Zone at the Bornholm Energy Island

The Danish Energy Agency has contributed to the establishment of a new bidding zone that will enter into force with the commissioning of Bornholm Energy Island. The bidding zone is being established on the basis of a structural congestion identified by Energinet in the electricity transmission grid that will connect Bornholm Energy Island with Zealand and Germany.

Based on Energinet’s identification of a structural congestion, the Danish Energy Agency has initiated a process to establish a new bidding zone that complies with the EU regulation.

Bidding zone borders must be established where a structural congestion in the electricity transmission grid is detected. Energinet has confirmed that the structural congestion in the electricity transmission grid that will connect the Bornholm Energy Island to Zealand and Germany should be visible to market participants as a bidding zone border.

In connection with the establishment of the new bidding zone, Denmark has been in dialogue with relevant member states and has consulted stakeholders on the decision to establish a new bidding zone.

Based on Energinet’s analysis and on the basis of the dialogue with member states and the public consultation, the Danish Energy Agency on 15 December 2023 has notified the European Commission and ACER (Agency for the Cooperation of Energy Regulators) that Denmark has decided to establish the new bidding zone DK3 at Energiø Bornholm.