News

Reinhard Kaisinger about the challenges for interconnectors

To reach European energy transition targets, key players need to work hand in hand to further expand the current electricity infrastructure. Numerous investments are being made to improve grids throughout Europe; more and more interconnectors are being commissioned. Expert Reinhard Kaisinger has been involved in multiple interconnector projects. What are the specific challenges of these projects?

Why are interconnectors so important in the European energy transition?

Interconnectors are key for several aspects. They support market integration, strengthen security of supply and – soon – bring offshore wind energy onshore. More integrated electricity markets increase social welfare and levels of security of supply reduce the potential need for reserves. When interconnectors connect offshore wind platforms with at least two countries, these so-called ‘hybrid interconnectors’ serve two purposes: They transport offshore wind energy onshore and enable the transfer of power between the connected countries.

What makes these projects so challenging?

Putting interconnectors into operation is challenging and requires endurance: on average, a new interconnector takes 9 years to complete. Along with the massive infrastructural work required and power system integration, new interconnectors must be incorporated into existing electricity markets and operations. For cross-border infrastructure, such as interconnectors, the sharing of costs (and benefits) often needs to be resolved before a project can move forward. Along with this comes the growing need for intensive cooperation among system operators, interconnector owners, regulators and other stakeholders, such as environmental agencies, at different stages of interconnector projects.

How does Magnus Energy support these kinds of projects?

Over the years, our experts have been involved in numerous interconnector projects in various roles. Our experts help navigate the complex landscape in which the new interconnectors are established and will operate. How can an interconnector operate between regions that were previously not connected and with different regulations? How will the interconnector be integrated within the existing capacity calculation and allocation processes or within the capacity calculation regions? How will the capacity of the interconnector be used in different electricity market timeframes such as long-term, day-ahead, intraday and balancing? What specific operational, financial and technical framework applies to the new interconnector? These are some of the questions that our experts helped (and can help you!) answer.

If you want to learn more about our work related to interconnector projects, feel free to reach out to Reinhard.