Commission Decision (EU) 2020/2123 of 11 November 2020 granting the Federal Republic of Germany and the Kingdom of Denmark a derogation of the Kriegers Flak combined grid solution pursuant to Article 64 of Regulation (EU) 2019/943 of the European Parliament and of the Council (notified under document C(2020) 7948) (Only the Danish and German texts are authentic) (Text with EEA relevance)

• CELEX: Decision (EU) 2020/2123
• Articles: 6

Article 1

A derogation is granted to the Kriegers Flak Combined Grid Facility from the provisions of Article 16(8) of Regulation (EU) 2019/943. In calculating whether the minimum levels of available capacity for cross-zonal trade are reached, the capacity basis to be used for calculating the minimum capacity shall be the residual capacity after deduction of the capacity necessary for transporting the forecasted electricity production by the wind farms connected to the Kriegers Flak Combined Grid Facility at the day ahead stage to the respective national onshore systems, rather than the total transmission capacity.

Article 16(1) of Regulation (EU) 2019/943 remains fully applicable, and the maximum level of capacity of the Kriegers Flak Combined Grid Facility and of the transmission networks affected by the cross-border capacity of the Kriegers Flak Combined Grid Facility, going up to the total network capacity of the Kriegers Flak Combined Grid Facility, shall be made available to market participants complying with the safety standards of secure network operation.

Article 2

The derogation under Article 1 shall encompass all references to the minimum capacity to be made available for trade under Article 16(8) of Regulation (EU) 2019/943, in Regulation (EU) 2019/943 and in Commission Regulations based upon this Regulation.

Article 3

The derogation under Article 1 shall be applicable until 10 years after adoption of the Commission Decision. This period may be prolonged by the Commission pursuant to Article 4. The total duration of the derogation, including any prolongations, shall not exceed 25 years.

Where any of the three wind farms connected to the Kriegers Flak Combined Grid Facility stops operating other than for usual maintenance or repairs with a limited duration, or such wind farm becomes subject to significant modifications, electricity forecasts to be produced by this wind farm shall no longer be deducted under Article 1, thereby increasing the available capacity for trade on the interconnector. Interruptions in production due to low market prices or instructions from system operators are not to be considered. Modifications shall be deemed to be significant at least where a new connection agreement is required or where the generation capacity of the wind farm is increased by more than 5 %.

Article 4

The Danish and German authorities may request the Commission to prolong the derogation period set out in Article 3. Any such request shall be submitted sufficiently in advance of the end of the derogation period. Any request for prolongation of the derogation shall include an analysis of the costs and benefits of the regulatory approach chosen under the derogation, including quantitative analysis. It shall also provide analysis on possible alternative solutions, notably the integration of the Kriegers Flak Combined Grid Facility into the general regulated system for offshore hybrid assets applicable at that time, the creation of a separate offshore bidding zone for the Kriegers Flak Combined Grid Facility, and/or conducting additional investments to increase available transmission capacity. If the Commission, following a request for prolongation, comes to the conclusion that changes to the regulatory approach as set out under this decision are required, or that other conditions are necessary to increase competition or market integration, sufficient time shall be given for their implementation, giving also sufficient advance notice to other market participants of possible changes to available cross-border capacity.

Article 5

If providers of flexibility services show concrete interest in realising projects which could increase available capacity for trade in the Kriegers Flak Combined Grid Facility by making use of flexibility services, such investments shall be duly considered by the Danish and German authorities, making use of their potential to increase available capacity for trade up to the minimum value as set out in Article 16(8) of the Electricity Regulation. Where such investments are proposed but not enabled in the Kriegers Flak Combined Grid Facility, the national authorities shall inform the Commission thereof.

Article 6

This Decision is addressed to the Kingdom of Denmark and the Federal Republic of Germany.