Why Denmark and Great Britain?
Denmark is part of the Nord Pool power market and has good links with Sweden, Germany and Norway. For Great Britain, connecting here will prove access to a well-developed, low cost market with prices set by a diversified energy mix from across Scandinavia and Northern Germany.
For the Danish electricity producers, an interconnector to Great Britain will give access to a high price market and thus increasing the value of intermittent wind generation.
Viking Link will give Denmark and Great Britain access to a broader energy mix, providing the countries with new opportunities to expand into other electricity markets. The market forces of supply and demand will result in lower prices in peak-consumption periods.
Wind generation outputs between the UK and Denmark show low correlation and periods of high production are unlikely to occur at the same time in both countries. Energy that is surplus to requirements will be easily transmitted through the interconnector to where the level of demand is higher. This will support the renewable energy markets in both countries, reduce the need to curtail generation during peaks in production and have a beneficial impact on market prices.