The North Seas Countries' Offshore Grid Initiative - Initial ... - Benelux
The North Seas Countries' Offshore Grid Initiative - Initial ... - Benelux
The North Seas Countries' Offshore Grid Initiative - Initial ... - Benelux
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5.1.4.2 Marginal cost changes<br />
Figure 5-12shows the impact of extra grid capacity on marginal cost differences (base for<br />
electricity price differences) between countries. Marginal cost differences are a driver for<br />
the market to realize interconnections.<br />
<strong>The</strong> blue area indicates the spread of short run marginal cost (SRMC) between countries if<br />
grid 2020 interconnectivity is available. <strong>The</strong> figure shows that the spread is significantly<br />
reduced with grid 2030 connectivity (the green area).<br />
Figure 5-12: Spread of short run marginal cost for the Reference Scenario in the year 2030 for grid 2020<br />
and grid 2030/radial design<br />
5.1.4.3 Fuel Mix in Energy<br />
<strong>The</strong> fuel mix has been calculated for each NSCOGI market node based on the Reference<br />
Scenario for the two 2030 grid designs, with the 2020 grid as a reference point. Figure<br />
5-13 compares these three sets of results for each node; the left column represents the<br />
fuel mix with the grid as planned in 2020 (<strong>Grid</strong>2020), the middle column represents the<br />
fuel mix with the radial expansion in 2030 (<strong>Grid</strong>2030Radial), and the rightmost column<br />
represents the fuel mix with the meshed expansion in 2030 (<strong>Grid</strong>2030Meshed).<br />
A summed fuel mix greater than 100% for a market node means that generation exceeded<br />
demand at that node and electricity was therefore exported to a neighbouring country.<br />
Similarly, a summed fuel mix of less than 100% means that the market node met some<br />
portion of its demand using imported electricity from neighbouring countries.<br />
Comparing the results for the meshed and radial designs it can be observed that there is<br />
little difference in the fuel mix between the radial and meshed configurations. Nuclear<br />
generation benefits from the increase in interconnection in the 2030 configurations.<br />
However, the greatest changes are in coal and gas generation. As mentioned previously,<br />
coal generation is more economic in general to gas generation in this scenario. With<br />
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