Viking Link power cable from Denmark to UK starts at 800 MW

The 1.4-GW Viking Link subsea power cable between Denmark and the UK started commercial operations on Dec. 29 with flows initially constrained to 800 MW, National Grid said in a statement.

Transmission capacity is currently auctioned daily via the Joint Allocation Office (JAO) with hourly prices for Jan. 2 ranging from Eur0.05/MWh to Eur30.93/MWh in the Denmark-GB direction and mostly zero in the reverse direction.

UK Energy Security Secretary Claire Coutinho said the cable "will help British families save GBP500 million on their bills over the next decade, while cutting emissions."

In its first year of operation Viking Link is expected to save approximately 600,000 mt of CO2 emissions, according to National Grid estimates.

National Grid and Danish system operator Energinet will be working together to bring the asset up to full capacity over the coming year, the UK operator said.

The GBP1.7 billion ($2.2 billion) project is a joint venture between National Grid and Energinet and is the world's longest subsea cable stretching for 475 miles to join the Bicker Fen substation in Lincolnshire, eastern England with Revsing substation in southern Jutland, Denmark.

The first auction of monthly transmission capacity on JAO is scheduled for Feb. 20/21 for March capacity.

Danish grid bottlenecks

The new cable is set to boost British power imports with Nordic system prices as well as Danish bidding zone prices well below UK power prices.

Platts, a unit of S&P Global Commodity Insights, last assessed GB power for March delivery at GBP80.95/MWh (Eur93.11/MWh) on Dec. 29.

Nordic power for March closed Dec. 29 at Eur74/MWh on EEX with future contracts for Nordic bidding zones set to launch later this quarter.

Denmark's transmission system operator Energinet said Dec. 15 that capacity will be restricted to 800 MW initially due to grid bottlenecks in the wind-rich West Jutland region.

The existing grid risks overload if Viking Link would be allocated the full capacity from the start, it said.

Energinet is working to continuously raise the possibility of more import and export flows, it added.

The expansion of the 400 kV grid along Denmark's West Coast will increase grid capacity and enable full capacity in Viking Link with the first part of the West Coast Link from the German border to Endrup scheduled to be put into operation in Q1 2025, it said.

Analysts at S&P Global Commodity Insights forecast net flows to average around 500 MW from Denmark to Great Britain due to the constraints assumed to last until February 2025, according to a weekly report published Dec. 20.

"As we deploy more wind power to meet our climate and energy security targets, connections to our neighbouring countries will play a vital role increasing security of supply and reducing prices for consumers," said National Grid Ventures President Katie Jackson.