DTe Assesses Electricity Cable between Norway and the Netherlands

In its assessment of the application by TenneT, the manager of the national high-voltage grid, to lay an electricity cable between the Netherlands and Norway, the Office of Energy Regulation (DTe) will examine whether the expected revenues from the cable outweigh its costs. In addition, it is of prime importance that Dutch consumers should benefit from the cable, for instance in the form of lower electricity prices or greater security of supply.

On 31 August 2004, DTe received an application from TenneT to approve the construction of an electricity cable between the Netherlands and Norway. The 580 kilometre long ocean cable has a capacity of approximately 600 MW and makes it possible to transmit electricity between the Netherlands and Norway.

DTe will also says the extent to which risks relating to the project are manageable. Experience has shown that such large-scale projects may result, for instance, in higher construction costs or lower than expected income if the differences in electricity prices in the Netherlands and Norway are smaller than expected. Unforeseen risks may eliminate advantages or even result in higher rates.

Due to the considerable importance of the decision on whether or not to construct the electricity cable, DTe has asked market parties to give their opinions. With a view to this, DTe invites these parties to give their opinions of the application for approval submitted by TenneT. The public version of the application will be available for inspection at DTe for four weeks as of Monday, 27 September 2004. In addition to the application, DTe will also publish correspondence between DTe and TenneT regarding the cable and research reports.