Cross-border exchange of electricity will lead to lower prices

The transmission system operators (TSOs) of the Netherlands, Belgium, Luxemburg, Germany, France, and Austria must reserve at least 20% of the capacities on their high-voltage grids for cross-border transport. As a result thereof, more trade in electricity between these countries will be possible. And that, in turn, will lead to lower energy prices.

This requirement is the result of arrangements made between the energy regulators in these countries. In the Netherlands, this concerns TenneT as the TSO, and the Netherlands Authority for Consumers and Markets (ACM) as energy regulator.

Helping realize the energy transition

The increase in trade also helps towards the energy transition. Solar and wind power play a large role in that transition. Supply of such sustainable energy may vary tremendously per region, depending on where the sun is shining or where the wind is blowing. That is why it is important that electricity can be exchanged more easily between these countries.

A single electricity market on the entire European continent

The TSOs in the abovementioned countries have, since 2015 already, used an advanced system in order to determine the cross-border capacity for electricity. At certain times, little cross-border capacity is available on the high-voltage grid. That is why these countries have agreed on reserving at least 20% of the capacities on their high-voltage grids. This percentage is expected to go up in the future, as is the number of participating countries. The idea behind this advanced system is to couple the electricity markets on the entire European continent, turning them into a single market.