Impact of Spanish Offshore Wind Generation in the Iberian Electricity Market: Potential Savings and Policy Implications

Abstract

The European Union considers that offshore wind power will play a key role in making the EU the first climate-neutral continent by 2050. Currently, the potential of offshore wind energy is still untapped in Spain. Furthermore, the characteristics of the coastline in Spain require floating technology, making it challenging to install wind farms due to their current high cost. This work seeks to quantify the impact that Spanish offshore wind energy would have on the Iberian electricity market. Several offshore wind scenarios are evaluated by combining available information in relation to areas suitable for installing wind farms and wind resource data. The impact on the day-ahead electricity market has been obtained by reproducing the market, including these new offshore wind generation scenarios. The introduction of this renewable energy results in a market cost reduction in what is known as the merit-order effect. According to our estimates, for each MWh of offshore wind energy introduced in the market, there would be a market cost reduction of 45 €. These savings can serve as a reference for regulators to adjust their policy framework to boost floating wind offshore generation.

Offshore wind power around the Iberian Peninsula: variability, complementarity and added value for the power system

“…The Iberian power system is semi-closed (with limited interconnections to France and Morocco), with an already high variable renewable energy share and two demand maxima in winter and summer. Offshore wind energy resources are known to be large, but the needed floating wind turbines are more costly than onshore wind and solar technology or fixed offshore turbines [9]. If offshore wind energy can offer an added value for the Iberian power system in terms of a stable contribution, with low temporal variability and reduced seasonality, the case for its development would be strengthened.…”

“…In addition to onshore wind and photovoltaic technologies, currently with a very high rate of power installation, the IP has a large potential for the development of offshore technologies, due to the great length of its coasts [5][6][7]. Offshore wind energy has certain advantages over traditional onshore wind energy, such as an increased capacity factor (CF) or the higher availability of new areas for the development of future wind farms [8][9][10]. The IP presents several areas with significant offshore wind resources, most notably at the northwestern coast, near the Gulf of Lion or around Gibraltar Strait [9,[11][12][13][14][15][16].…”

“…Offshore wind energy has certain advantages over traditional onshore wind energy, such as an increased capacity factor (CF) or the higher availability of new areas for the development of future wind farms [8][9][10]. The IP presents several areas with significant offshore wind resources, most notably at the northwestern coast, near the Gulf of Lion or around Gibraltar Strait [9,[11][12][13][14][15][16]. However, there are spatial planning limitations for the deployment of floating offshore wind towers, due to other uses of the marine areas or the existence of protected areas [17].…”

Comparative Performance of Inverted-Based Generation using Synchonverter during Transient Stability Conditions

“…Current power networks are undergoing substantial transformation, which is tied to all aspects of the electrical sector [1], [2], [3]: (i) generation-side: deployment and use of more environmentally friendly and weather dependent technologies [4], (ii) grid-side: integration of more flexible assets where the use of direct current (DC) and other technologies (FACTS and storage) are vital elements [5], (iii) demand-side: the rise of novel technologies behind the meter such as small-scale battery energy storage (BESS), electric cars, and the huge transformation of the costumer evolving for a very passive role and the emergence of the concept of the prosumer, prosumers concept is a reality in various nations across the world [6], [7]. The aforementioned power system transformation shares numerous characteristics, but the unifying denominator is the massive integration of IBG [8], [9].…”

Frequency Support provided by Inverted Based-Generation using Grid-Forming Controllers: A Comparison during Islanded Operation

“…Modern power systems are underway to significant changes; those changes are related to all the electricity business activities [1], [2], [3]: (i) generation: more environmentally friendly and weather dependent technologies [4], (ii) transmission/distribution: more flexible assets where DC is crucial part [5], (iii) consumption: new technologies behind the meter as energy storage, electric vehicles, and now the concept of passive customer disappearing and the concept of the prosumer is a reality in several countries around the world [6], [7]. There are several aspects in common to the power system changes, but the common denominator is the colossal integration of IBG [8], [9].…”