Electricity market

The energy sector is developing rapidly. The process of European market integration began some years ago. Its purpose is to create a single European market that enables market parties to trade gas and electricity across national borders easily and efficiently.

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TenneT starts expansion of the Meeden-Diele interconnector between the Netherlands and Germany

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The capacity expansion of the existing electricity connection between Meeden (the Netherlands) and Diele (Germany) as announced by TenneT is proceeding according to plan. The expanded capacity will enable the exchange of increased flows of electricity between both countries. For the Netherlands, this means that more cheap, sustainable electricity from Germany may be imported, leading to lower market prices. The fact that TenneT operates the electricity grid on both the Dutch and German side of the Meeden-Diele connection has positively contributed to the decision to expand the interconnector's capacity.

With the realisation of the project by the end of 2019, TenneT is able to facilitate the market with an additional capacity up to approx. 300MW in the years to follow. Depending on market developments and the effect of other investments, this may even increase to 500 MW at a later stage.

Investing in improved electricity market operation

The Netherlands already has a good number of connections with other countries, and TenneT is currently investing in new projects aimed at expanding cross-border transmission capacity. Construction of the new Dutch-German interconnector between Doetinchem and Wesel is already ongoing. Completion of this cross-border power highway is scheduled for mid-2017. This autumn, TenneT expects to be able to start constructing the COBRA subsea cable, which will connect the Netherlands and Denmark. From the TenneT-operated German grid, TenneT is working to create the NordLink cable, which will be the first ever direct link between the German and Norwegian electricity markets.

In addition, flow-based market coupling introduced in 2015 will ensure improved utilisation of the currently available trade capacity on cross-border connections, which will result in more efficient utilisation of the high-voltage grid. For the Netherlands – as well as for Belgium, for instance – this form of market coupling will increase imports of cheaper electricity.

The benefits from international electricity trading

Expanded cross-border transmission capacity will enable the trading of increased amounts of electricity between countries, leading to smaller price differences. It also helps to keep down electricity prices in the Netherlands, which is good for consumers and improves the competitive position of major industrial electricity consumers. In addition, interconnectors contribute to the large-scale integration of sustainable energy.

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Jeroen Brouwers

Media Relations

+31 (0)26 373 26 00


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