2025-12-18
The Grids Package recognizes interconnectors – but more action is needed to fully realize the European energy union
Last week, the European Commission presented the European Grids Package. Baltic Cable acknowledges the increased focus of interconnectors and on private investors as important means for accelerating interconnector build-out and for closing the 41 GW gap by 2030.
While the Grids Package addresses many key aspects of interconnector and grid deployment, additional measures must be included in legislation to accelerate interconnector and cross-border infrastructure development:
Define “Interconnector Transmission System Operators (TSOs)” to facilitate accelerated build out of interconnectors on market-based incentives.
- Interconnector TSOs connect electricity markets and AC grids through High-Voltage Direct Current (HVDC) transmission lines. They focus only on interconnectors and have no control area responsibilities. Also, interconnector TSOs have no customers, hence no tariffs – the sole revenue is congestion income.
- With its’ unique features, a new category of TSOs – “Interconnector TSOs” – must be included in EU legislation, as well as in Member States’ national legislation to facilitate private investments and to de-risk interconnector projects.
Create an HVDC Capacity Calculation Region (CCR) to facilitate efficient market integration of HVDC interconnectors.
- For efficient integration of HVDC lines to the single European market, harmonised and streamlined methodologies should be developed and implemented in legislation. This can be done efficiently by a dedicated HVDC CCR.
- A pan-European HVDC CCR can include all interconnectors developed across Europe. It can also support an efficient re-connection of UK interconnectors to the European internal market.
By de-risking projects from introducing the concept of Interconnector TSOs and HVDC CCRs, private investors can accelerate cross-border investments and increase the possibility of closing the 41 GW gap to 2030. This will determine the future of Europe’s security, competitiveness and energy transition.
