The North Seas Countries' Offshore Grid Initiative - Initial ... - Benelux

4.4 Production Costs
The models calculate the variable cost of production comprising fuel costs, Variable
Operation and Maintenance (VOM) costs and CO emissions costs. In order to compare the
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different benefits of a radial and a meshed grid design in an appropriate manner, a
common starting point is required for the analysis. This common starting point is found in
the grid of the year 2020, which should accommodate the generation mix calculated for
the year 2030, see Figure 2-2. The variable production costs of this fuel mix 2030 are
then compared with those that result from the model runs under the radial grid design
and the meshed grid design for the year 2030. These comparisons can be found in
chapter 5.1.5 Because of the difference in fuel mix, there is a wide spread in the specific
average production cost in €/MWh between the countries of the Region. This is illustrated
by Figure 4-6, which also shows the average regional cost making it easy to see which
countries’ costs are above and below the regional average.
Figure 4-6 Average Variable Production Costs per produced MWh by NSCOGI Country and for the Region as
a whole for the year 2030 with the NSCOGI Reference Scenario and with 2020 grid capacities
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