European power exchange Nord Pool has won a contract by National Grid and Statnett to deliver a solution outside of the Internal Energy Market (IEM) to provide implicit capacity in its day ahead market for the 1,400 MW North Sea Link (NSL).
NSL , a joint venture between National Grid and Statnett, will directly connect the electricity systems of the UK and Norway for the first time.
Since the UK will not be able to access the IEM post-Brexit, NSL will provide alternate arrangements to offer capacity to the market.
Specifically, this new solution, delivered by Nord Pool through its day-ahead auction, offers a blueprint for how the UK market could operate outside of the IEM.
Hans Randen , director of Market Coupling at Nord Pool, said: “At a time of uncertainty in the GB power market, we see this as an important first step in securing an efficient market solution outside the IEM.
“With its strategic position linking the British and Norwegian power markets, NSL is central to Nord Pool’s core markets, meaning it will bring tangible benefits to our customers.”
Josh Coomber , commercial readiness lead at National Grid North Sea Link, also said: “This is an exciting opportunity for us to work closely with Nord Pool to develop a solution that will allow us to offer implicit capacity products to the market once NSL goes live.
“It is a great step towards facilitating electricity trading between GB and Norway, bringing positive benefits to consumers and a cleaner energy future.”
The North Sea Link By 2021 the two parallel 720-kilometre cables between Cambois, Northumberland in the UK and Kvilldal, in Norway will have been completed.
This will then make the 1.4-gigawatt North Sea Link the longest subsea power cable interconnector in the world.
It should also be operational by 2021, allowing the UK enough clean energy to power up to 1.4 million homes.