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

In particular, PEMMDB generation and load data consistent with the EU2020 Scenario was
used to model the neighbouring countries. This scenario is based on the 2020 National
Renewable Energy Action Plan (NREAP) targets set by governments of the member states
and represents a context in which all the
European Union 20-20-20 objectives are met.
Figure 7-3: Market Modelling Perimeters in the NSCOGI Study
Each country is modelled as one market node,
neglecting the internal bottlenecks, except for
Denmark and Luxembourg where, due to the
grid design, the market areas are split.
Northern Ireland and Ireland are modelled
together as they form a single wholesale
market. All these nodes are connected with
each other with specified cross-border
transfer capacities.
A 1.2.3 Market Integration Potential (2020 Grid)
An important element in the process, facilitated by market modelling, is the assessment of
possibilities of increasing interconnection capacity between the countries. Market
modelling can be used to assess the reduction of the overall variable generating costs in
the system when an extra interconnector is added connecting high and low price areas..
The outcome shows a combined benefit of connecting RES and facilitating the market.
A methodology has been developed to get a first impression of additional economically
feasible interconnections by comparing the calculated market benefits with the investment
cost.
The process inside the market models can be summarised as follows:
1. Run market simulations for the 8760 hours in the year. The initial simulation is done
with 2020 interconnections as included in the TYNDP 2012.
2. Calculate actual system cost savings: This can only be performed after the first
iteration. The system cost savings resulting from additional interconnections consist
of two parts. First, the production cost savings as additional interconnections allow a
more cost efficient electricity generation. Second, the investment costs of the
interconnections.
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