NeuConnect: Auctioneer selected for cross-border transmission capacity

Project & Tenders

As part of plans for preparations for the start of commercial and market operations, Joint Allocation Office (JAO) has been appointed as the provider for auctioning cross-border transmission capacity for the NeuConnect high-voltage submarine cable that will create the first direct energy transmission link between the UK and Germany.

With converter stations on the Isle of Grain in Kent and Wilhelmshaven in northern Germany, the 725-kilometer NeuConnect interconnector is said to create an “invisible energy highway” capable of transferring 1.4 GW of electricity in either direction, enough to power 1.5 million homes.

Under a Memorandum of Understanding (MoU), JAO will become NeuConnect’s allocation provider for cross-border transmission capacity, covering all of the project’s auction activities in the long-term markets (yearly, seasonal, quarterly, monthly) and short-term markets (day ahead and intraday).

Furthermore, the agreement ensures that NeuConnect is included in JAO’s IT development pipeline, securing its services for when trial operations start towards the end of 2027, and then when the link becomes fully operational in 2028.

“NeuConnect will deliver a vital new energy link for Europe so it is crucial that we put in place the right IT systems to allow us to seamlessly and efficiently participate in the European energy market, making the sale of our capacity as easy as possible,” said NeuConnect Chief Operating Officer Andy Paton.

“The agreement we’ve signed with JAO ensures that NeuConnect will be supported by the leading provider for transmission capacity auctions in Europe, and marks another important step as we begin to look ahead to the start of operations.”

The MoU comes as major construction on NeuConnect is well underway in the UK and Germany, and with the project starting to look ahead to preparations for the start of commercial and market operations, which includes putting in place key IT services and infrastructure to ensure that market participants are prepared and able to purchase and use the link’s capacity.

Further announcements are planned later this year on the provider of the project’s Market Integration Platform.

“NeuConnect represents a landmark step in strengthening Europe’s energy resilience and integration. By connecting Germany and UK, this project will not only enhance security of supply but also accelerate the transition to a more sustainable energy future,” JAO Chief Operating Officer Thomas Kieffer said.

“JAO is proud to support this vision by providing a trusted and efficient platform for cross-border capacity allocation. Our collaboration ensures that market participants will benefit from a transparent, harmonized, and reliable process, reinforcing NeuConnect’s vital role in Europe’s interconnected energy landscape.”

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