Direct Electricity Supply Lines To Be Allowed In Denmark

As part of the efforts to make the Danish energy regulatory framework accommodating for Power-to-X projects, a draft bill has been presented to the Danish Parliament, proposing to allow the establishment of direct electricity supply lines, thereby reversing the current administrative practice of the Danish Energy Agency ("DEA"). This newsletter takes you through the proposed new rules.

Background

The Danish electricity grid is based on a collective approach where both production facilities and offtakers have been connected to either the collective distribution or transmission grids. The approach has proved successful in expanding and enhancing the Danish electricity grid in areas where the transmission system operator or the distribution system operators ("DSO") may not necessarily have an economic incentive to do so.