Why Interconnection Matters
The EU aims for a fully interconnected electricity system – a true European energy union. By 2030, Europe faces an estimated 88 GW cross-border electricity transmission capacity gap. Closing it requires rapid action from the industry, investors, manufacturer supply chains and regulators.
Across the agenda, the EU is prioritising strengthened energy security, increased competitiveness and the energy transition. A flexible and resilient electricity system underpins progress in all three dimensions. Interconnectors, which physically connects national electricity grids and ensure cross-border power flows, are key enablers.
The Role of Interconnector Transmission System Operators
Baltic Cable provides cross-border transmission capacity that supports market integration between grid areas and helps close the cross-border electricity transmission gap - identified by the EU. As an Interconnector Transmission System Operators, Baltic Cable contributes with focused operation of interconnector infrastructure and long-term investments that increase system flexibility and resilience.
Interconnector TSOs are specialised entities operating one or more interconnectors that connects electricity markets and AC grid areas. Interconnector TSOs are fully certified and fully regulated. Unlike control area TSOs, Interconnector TSOs have neither control area responsibilities, customers, or tariffs. Their main source of income is congestion income.
To unlock more interconnector capacity, the regulatory framework needs to provide predictability and be suitably tailored to the specific conditions of Interconnector TSOs.
This would enable timely investment and the continued development of the European electricity system. Thus, foster security, competitiveness and the energy transition.
Strengthened Security
As global instability grows, safeguarding Europe’s critical infrastructure and ensuring energy availability is becoming increasingly vital. This demands a robust and reliable electricity system where multiple actors work together. No European country stands alone. Cross-border collaboration and increased interconnection builds a more resilient electricity system and creates a stronger and more secure Europe.
Increased Competitiveness
To foster European competitiveness, innovation, industry development and entrepreneurial success – electricity is key. Whether it’s the creating new companies, building new markets, or the electrification of the European continent, more cross-border electricity transmission capacity is crucial to ensure the reliable supply of electricity required for a truly competitive Europe.
Enabled Energy Transition
The need for clean and renewable energy resources increases. This means, that the electricity system must become more flexible to manage the intermittent nature of renewable energy. Increased cross-border electricity transmission capacity will help prevent supply shortages and meet unexpected demands. It allows for electricity to flow efficiently across borders, ensuring that clean energy is used efficiently throughout Europe.
Through more interconnectors, production can take place at the most suitable locations and electricity can flow to where it is needed – without going to waste.
