Baltic Cable AB
Baltic Cable AB owns and operates the Baltic Cable, a 250 kilometre long High Voltage Direct Current (HVDC) sub-sea cable, interconnecting the German transmission system, operated by TenneT TSO GmbH, and the Swedish transmission system, operated by Svenska Kraftnät.
ID: 405062345725-15
Lobbying Activity
Response to Electrification Action Plan
9 Oct 2025
To meet the electrification challenges and to overcome the existing barriers that risks hampering the increase in electrification, cross-border interconnectors are crucial for the implementation of the Electrification Action Plan and the upcoming EU Grid Package. Development of cross-border capacity enables electricity to flow where it is best needed, with the right amount, at the right point in time, to the right region. Therefore, the importance of recognising interconnectors, and Interconnector Transmission System Operators, Interconnector TSOs, in European as well as in regional and national legislative and regulatory frameworks, is crucial for an accelerated electrification and the closure of the 32 GW interconnector gap until 2030 and onwards. Current legislations put focus on traditional frequency control area TSOs. However, there is a category of market participants that is missing in European and national legal and regulatory frameworks that could increase investments in interconnectors to close the 32 GW interconnector gap and hence, contribute to enable the electrification. These market participants are the Interconnector Transmission System Operators (Interconnector TSOs). To accelerate Interconnector TSOs role in the build out of interconnectors and in reaching the European Unions goals of electrification as a tool for competitiveness, security and clean energy transition, the legislative and regulatory frameworks need to take several aspects into account. These are: A definition of Interconnector Transmission System Operator TSO, Interconnector TSOs. This definition and the interconnector TSOs specific features need to be considered in primary and secondary legislation as well as in network codes and national legislation, for example regarding certification, permitting processes and the use of congestion income. A development of a Pan-European Capacity Calculation Region (CCR) for High Voltage Direct Current (HVDC) interconnectors and a pan-European capacity calculation methodology for HVDC interconnectors to further accelerate the build out of interconnectors will be important for efficient connection to the AC grid and efficient inclusion of more interconnectors. The high-risk environment Interconnector TSOs operate in must be taken into account to enable interconnector build out. Interconnector TSOs, project developers, joint ventures, i.e. market participants and various cooperative forms that can accelerate build out of interconnectors must all have easy access to financial mechanisms. Flexible and fit-for-purpose as well as NRA-harmonised Use of Congestion Income (UCI) methodology, reflecting the high risks and the need for relevant risk premiums in the UCI is important to incentivise the build out of interconnectors in high-risk waters. A top-down approach of implementation of the Ten-Year National Development Plan (TYNDP) in combination with the current bottom-up implementation is crucial to accelerate the build out. Interconnector TSOs specific features, not only in electricity related legislative and regulatory acts related to the electricity market, but also in legislative and regulatory acts that relates to security and defence as well as of the financial markets, have to be considered. These factors must be considered when developing new legislation and regulatory frameworks within the electricity market, the security and the financial areas. The non-recognition of Interconnector TSOs in electricity market legislative frameworks and in the security and financial markets frameworks, limit the capacity of current and future Interconnector TSOs to prepare investment cases, secure financing and progress to construction within the timelines required to meet the EU electrification, interconnection, competitiveness, security and decarbonisation targets. It should be taken into account also in the Electrification Action Plan.
Read full responseResponse to European grid package
25 Jul 2025
The importance of recognising interconnectors, and interconnector TSOs, in European as well as in regional and national legislative and regulatory frameworks, is crucial for an accelerated interconnector development and the closure of the 32 GW interconnector gap until 2030 and onwards. Current legislations put focus on traditional frequency control area TSOs. However, there is a category of market participants that is missing in European and national legal and regulatory frameworks that could increase investments in interconnectors to close the 32 GW interconnector gap. These market participants are the Interconnector TSOs. To accelerate Interconnector TSOs role in the build out of interconnectors and in reaching the European Unions goals of competitiveness, security and clean energy transition, the legislative and regulatory frameworks need take into account: - A definition of Interconnector Transmission System Operator TSO, Interconnector TSOs. - The interconnector TSOs specific features in primary and secondary legislation as well as in network codes and national legislation, for example regarding certification, permitting processes and the use of congestion income. - A development of a Pan-European CCR methodology for HVDC interconnectors to further accelerate the build out of interconnectors. - The high-risk environment Interconnector TSOs operate in. - Interconnector TSOs, project developers, joint ventures, i.e. actors and various cooperative forms that can accelerate build out of interconnectors. - Easy access to financial mechanisms for Interconnector TSOs and project developers. - Flexible and fit-for-purpose as well as NRA-harmonised Use of Congestion Income (UCI) methodology. - Reflection of high risk and the need for relevant risk premiums in the UCI. - A top-down approach of implementation of the Ten-Year National Development Plan (TYNDP) in combination with the current bottom-up implementation. - Interconnector TSOs specific features, not only in electricity related legislative and regulatory acts related to the electricity market, but also in legislative and regulatory acts that relates to security and defence as well as of the financial markets. These factors must be considered when developing new legislation and regulatory frameworks within the electricity market, the security and the financial areas. The non-recognition of Interconnector TSOs limit the capacity of current and future Interconnector TSOs to prepare investment cases, secure financing and progress to construction within the timelines required to meet the EU interconnection, competitiveness, security and decarbonisation targets. Taking this into account when developing the EU Grid Package, would be a first, and important, step to an accelerated build out of electricity interconnectors.
Read full response