The record high congestion revenues are a consequence of the large price differences between Norway and neighbouring countries with higher electricity prices and the numbers were presented today at Statnett's Autumn Conference. In addition to the revenues from the interconnectors, congestion revenues from the Norwegian internal transmission grid are roughly NOK 1 billion so far this year.
- These revenues contribute to financing the significant investments we are making to ensure enough electricity for the green transition. They also benefit Norwegian consumers, as our share of the grid tariffs will be lower than it was in 2020, in the middle of a period of massive development of the transmission grid nationally and internationally, says Statnett CEO Hilde Tonne.
In total, the congestion revenues so far this year have been close to NOK 3.9 billion. It is expected that the total congestion revenues in 2021 will cover over 40% of the costs for the transmission grid Statnett is responsible for.
The subsea interconnectors made a profit
In the past year, Statnett has completed two new subsea interconnectors, NordLink to Germany and North Sea Link to England. The income from these subsea interconnectors comes no matter which way the electricity flows. Even with a high average price in Norway for large parts of the year, 15% of the congestion revenues so far from NordLink came when importing electricity from Germany during periods of high power production and low prices on the German side.
Even though the interconnectors are large investments, congestion revenues still exceeded costs, and the profit has overall resulted in a reduction in grid rent of NOK 0.005-0,01 / kWh in the last two years. Statnett's share of the grid tariffs for 2022 is around NOK 0,05 / kWh for ordinary consumers.
- It is good to see the large revenues from our interconnectors and that the subsea cables we have built to Germany and the UK so far show profitability. These revenues are important when we are to invest NOK 60-100 billion in the grid to support the green change of pace, CEO Hilde Tonne concludes.
Congestion revenues derive from the price difference between two countries or between bidding zones internally in Norway. Statnett receives its share of the congestion revenues regardless of whether electricity is exported or imported between Norway and other countries.
The reason why the interconnectors currently provide such high congestion revenues is that the difference in the price of electricity between Norway and in other countries is larger than usual.