(Montel) German TSO Tennet has significantly increased power imports from Denmark in recent weeks, sending a bullish signal to the Nordic power market, said analysts on Monday.
The German TSO restricted imports from western Denmark for years due to limited domestic grid infrastructure but this situation has changed significantly in recent weeks, with just over 40% of the capacity being offered to the market on average over the past two weeks, according to figures from Nord Pool.
Last year, only 11% of the full export capacity of 1,780 MW on the link was utilised on average, said the Danish Energy Association in March.
“[if this trend continues], it will be bullish for the whole Nordic power curve,” said Sigbjørn Seland, a senior analyst at Nena.
Shrinking surplus?
Others agreed, noting the link between western Denmark and Germany represented 40% of overall export capacity from the Nordic market to continental Europe and that persistent German import restrictions had locked surplus power into the Nordic market.
"We may not see a strong impact on the spot short term, but over time it will give a steady support to prices," said Tor Reier Lilleholt, senior analyst at MK Online.
Tennet spokesman Mathias Fischer told Montel the group had been able to offer more capacity to the market due to a combination of factors, such as renewables output and power consumption as well as grid expansion works and maintenance measures.
"The constellation of all these parameters in both Germany and Denmark were positive and that is the reason why the capacity increased over the last weeks,” said Fischer.