OREANDA-NEWS. National Grid and Denmark's Energinet.dk have signed a cooperation agreement to begin feasibility work on an electricity interconnector between the UK and Denmark.

The agreement was signed in London today by Nick Winser Executive Director of National Grid and Peder Andreasen, the CEO of Energinet.dk, ahead of the meeting of the North European Energy Dialogue.

It would be the first electricity link between the two countries and work will now begin on feasibility studies on both the technical and economic aspects of the project. The two companies now have until October 2014 to look at possible routes and landing sites, budgets and permitting.

The cooperation agreement follows a study that began in May 2012 when the two companies agreed to look at the potential benefits and timetable for an interconnector link.

The interconnector could unlock significant economic benefits for both countries in helping to maximise the potential of both offshore and onshore wind, add to security of supply and enable a competitive market.

Nick Winser from National Grid said

“This agreement marks the start of what will be an exciting period of work together. Closer integration of the markets can bring benefits to the UK in helping to balance our network. However much needs to be done to secure a regulatory framework that will make the interconnector a commercially feasible project”.

Peder Andreasen said

“A UK-DK cable can make an important contribution towards stronger security of supply and a more interconnected electricity market in Northern Europe”.

Great Britain currently has three operational cable interconnectors with Ireland, France and the Netherlands, and there are projects looking at connections with Norway, Belgium and Iceland, and increasing capacity with France and Ireland.

Denmark has interconnectors with Norway, Sweden and Germany, and is currently building new interconnectors to Norway and Germany, and is investigating the possibility of establishing an interconnection between Denmark and the Netherlands