Denmark would gain financially from an international connection between Endrup near Esbjerg in Western Denmark and Eemshaven in the Netherlands. This appears from the business case which Energinet.dk has prepared for an approx. 300 km long submarine cable between the two countries. Energinet.dk's Supervisory Board has approved the business case and the application to build the so-called Cobra has been submitted to the Danish Minister for Climate, Energy and Building, Martin Lidegaard. Energinet.dk expects the approval in May.
Before a cable can be laid, both countries must approve and obtain environmental and planning permissions.
The Cobra cable will intensify competition and not only benefit Denmark and the Netherlands, but the entire region.
'In Denmark, the Danish power stations, CHP plants and wind turbine owner will profit from the Cobra cable in terms of trade, because they will have the opportunity to sell more electricity to a high-price area. That will be beneficial to their business. The profit more than compensates for the price of building the cable. Therefore, the cable will be socio-economically beneficial, Vice President, Electricity System Development,' Dorthe Vinther says.
EU has committed to fund the connection with EUR 86.5 million, ie approx. DKK 645 million. The total budget for the international connection is estimated at approx. DKK 4.5 billion.
If the Cobra cable becomes a reality, it can be in operation in 2019. The bill will be equally divided between the two countries, and in Denmark, an increase in the electricity consumers' grid tariff to Energinet.dk of DKK 0.03 per kWh will pay for the cable – based on the preliminary budgets.
'In addition to the Cobra cable overall being an economic benefit, another connection to a neighbouring country will in the long term help ensure the security of supply. We can import electricity when the wind turbines are not running here in Denmark, and vice versa,' Dorthe Vinther says and explains that the international connections partially take part in creating a large and cross-border power market and partially promote renewable energy, because more wind energy can be integrated into the energy systems.
The work of exploring the possibilities for a Cobra cable began in 2008. Ener-ginet.dk already has several international connections to Norway, Sweden and Germany. International connections are only build if they overall benefit the economy.