Integrated North Sea grids: The costs, the benefits and their distribution between countries

Abstract

A large number of offshore wind farms and interconnectors are expected to be constructed in the North Sea region over the coming decades, creating substantial opportunities for the deployment of integrated network solutions. Creating interconnected offshore grids that combine cross-border links and connections of offshore plants to shore offers multiple economic and environmental advantages for Europe's energy system. However, despite the growing consensus among key stakeholders that integrated solutions can be more beneficial than traditional radial connection practices, no such projects have been deployed yet. In this paper we quantify costs and benefits of integrated projects and investigate to which extent the cost-benefit sharing mechanism between participating countries can impede or encourage the development of integrated projects. Three concrete interconnection case studies in the North Sea area are analyzed in detail using a national-level power system model. Model outputs are used to compute the net benefit of all involved stakeholders under different allocation schemes. Given the asymmetric distribution of costs and benefits, we recommend to consistently apply the Positive Net Benefit Differential mechanism as a starting point for negotiations on the financial closure of investments in integrated offshore infrastructure.

The direct interconnection of the UK and Nordic power market – Impact on social welfare and renewable energy integration

“…To understand the impact of interconnection on wind integration in the UK, we investigate higher wind capacities in the UK and Nordic countries in separate scenarios with and without interconnection. In contrast with most of the reviewed studies [6,7], our findings suggest that a higher wind penetration in the UK has a negative impact on the socio-economic gain of the NSL link compared to the case of the link operating under today's conditions.…”

“…The planning and preparation phase of the project was completed by 2017 and NSL will interlink the two markets for the first time by 2021. The impact of UK-Nordic interconnectors on power prices in the UK [6], on social welfare gain [7], and on wind integration [8] has proved to be positive for the UK. Despite the Brexit Lockwood et al [9] argues that the UK should pursue the planned interconnections to reduce the costs and losses.…”

Towards a fully integrated North Sea offshore grid: An engineering‐economic assessment of a power link island

“…The same results were found in North Seas Countries' Offshore Grid Initiative () when comparing meshed typologies with radial ones, where the authors identified increasing benefits of an integrated NSOG with increasing shares of VRES. Similar findings have also been supported by Strbac, Moreno, Konstantelos, Pudjianto, and Aunedi () and more recently by Konstantelos et al ().…”

“…In light of previous studies (Konstantelos et al, ; North Seas Countries' Offshore Grid Initiative, ; Strbac et al, ), it is clear that increasing levels of grid integration yields multiple benefits. The PLI can be viewed as the ultimate level of integration due to its relative high capacity.…”

North Sea region energy system towards 2050: integrated offshore grid and sector coupling drive offshore wind installations

“…In addition, several existing and planned transmission lines are located in the region. Consequently, a meshed offshore grid in the North Sea has been proposed as an option for connecting transmission and offshore wind generation investments in the region (Konstantelos, et al, 2017), (Gorenstein Dedecca, Hakvoort, & Herder, 2017), (De Decker, et al, 2011). This paper presents results from comparing such integrated approach to a project-based scenario, where each offshore wind power plant (OWPP) is connected individually to onshore.…”