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IEE OffshoreGrid

Regulatory Framework for Offshore Grids and Power Markets in Europe: Techno-economic Assessment of

Different Design Options

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IEE OffshoreGrid

PROJECT DNA

– Techno-economic study– 8 partners, coordination by 3E, consultancy &

applied research institutes– Total cost: 1.4 million euros– Funding: 75% from Intelligent Energy Europe

(Contract IEE/08/780/SI2.528573)– Duration: May 2009 to October 2011

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Consortium MembersCONSULTANTS

– 3E: strategy, technical coordination, management– Senergy Econnect: Grid design optimisation– IEO: thorough knowledge on wind power policy– dena: power markets and regulatory situation

APPLIED RESEARCH

– Sintef: power market model and TradeWind experience– Uni Oldenburg: energy meteorology– NTUA: wind energy in the Mediterranean

INDUSTRY ASSOCIATION

– EWEA: communication and technical review3

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Objectives

GENERAL OBJECTIVES

– Recommendations on topology and capacity choices– Guideline for investment decision & project execution– Trigger a coordinated approach for the Mediterranean

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SPECIFIC OBJECTIVES

– A selection of blueprints for an offshore grid– Business figures for investments and return– Insight in interaction of design drivers and techno-

economic parameters– Representative wind power time series– Feedback from & acceptance by stakeholders

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Approach

PREPARATION

– Scenarios 2020 / 2030 – Offshore and onshore wind,

assumptions for onshore reinforcements– Energy economics, regulatory

framework

MODELLING

– Cost optimisation of infrastructure– European power market model

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Work Plan

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WP2: Regional electricity markets in Northern Europe & in the Mediterranean area: status and development

WP3: Offshore Wind Power Scenarios

WP7: Transfer to the Mediterranean area: electricity markets, wind energy development and inter-continental interconnection

WP1: Management

WP5: Offshore grid design optimization and investment calculation

WP6: Offshore electricity market modelling

WP8: Discussion and policy recommendations

WP10: IEE public relations

WP9:  Com-munication and publication

modelling Transfer und recommendations publications

WP4: Scenario definition and version control of the techno-economic work.

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Timing & High-level Milestones

May ‘09 Jan ‘10 Jul ‘10 Jan ‘11 Jul ‘11 Oct ‘11

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Tee-in solutions – Conclusions

• Benefit depends on reduced infrastr. costs vs introduced trade constraints

• More beneficial when:– Low price differences– WF far from shore and close to interconnector– Simple tee-joint is used instead of more expensive platform solution– Wind farm capacity is low compared to interconnector capacity OR double

its size– Country where wind farm is located usually has lowest prices– Offshore wind generation is inversely correlated with price difference

• Split wind farm connection is special case which proves beneficial for large farms far from shore

• If rating of each side not equal, connection capacity to country with highest price should be largest

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Overall grid design – Conclusions

• Two offshore grid design methodologies were assessed

– Direct design: builds on direct interconnectors, then integrated solutions and meshed links

– Split design: builds interconnections by splitting wind farms, then integrated solutions and meshed links

• Where beneficial, split connections have proven to be more cost-effective then direct interconnections

• An offshore grid will be built step by step. Every step influences both the future and the existing projects To identify an efficient design is a highly complex problem

• The two designs presented in this report bring useful understanding and conclusions that allow the grid development to be brought forward with modular steps in the best possible way.

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Recommendations – Overall grid design• Any interconnector has negative impact on existing interconnectors.

Therefore business case should be very strong As integrated solutions are less dependent on trade, these can be beneficial with lower price differences and should be considered.

• Merchant interconnectors concept can be questioned Encourages to obstruct new interconnections. Conflict of interest have to be avoided.

• Regulatory frameworks & support schemes pose problem How to make these compatible in the sense that these support integrated solutions should be assessed.

• Apart from the techno-economic benefits laid-out in the offshore grid report, integrated solutions produce other benefits Lower environmental impact, improved redundancy...

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• Final report pdf version

• Furthermore:

– Executive summary

– Annexes

– Maps

– Guidelines from Case-

independent-model

– Other WP Deliverables