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Powering Europe - European Wind Energy Association

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analysis<br />

fiGURE 14: tRaDE flows foR ChosEn EastERn EURoPEan CoUntRiEs in 2020<br />

From the exporting region’s point of view, positive figures represent net exports, negative figures represent net imports.<br />

final electricity consumption from renewable sources)<br />

is not reached in either scenario. The Reference scenario<br />

results in a renewable share of 22% of final electricity<br />

consumption in 2020, compared to a share of<br />

32% in the <strong>Wind</strong> scenario.<br />

In Figure 12 below, the simulated generation volumes<br />

for the different scenarios are illustrated.<br />

tradeflows<br />

In the Classic Carbon model, cross border transmission<br />

is modelled from an economic standpoint, with<br />

each connection from any one region to any other region<br />

having a specified (linear) loss, cost, availability,<br />

and capacity. 15 So, normally transmission is pricebased,<br />

i.e. based on price differences (the price<br />

includes losses and transmission fees). But, in some<br />

154<br />

Trade netow [TWh per annum]<br />

10<br />

5<br />

0<br />

-5<br />

-10<br />

-15<br />

-20<br />

-25<br />

Reference<br />

Slovakia<br />

<strong>Wind</strong><br />

Reference<br />

Exporting region<br />

Czech<br />

<strong>Wind</strong><br />

Reference<br />

Hungary<br />

<strong>Wind</strong><br />

Lithuania<br />

Sweden<br />

Slovakia<br />

Germany<br />

Austria<br />

Poland<br />

Hungary<br />

Czech<br />

cases, the transmission is fixed between regions,<br />

based on contracts between the regions (for example<br />

Finland and Russia).<br />

In general, larger amounts of wind power in the system,<br />

lead to an increased need for interconnection<br />

capacity.<br />

This is confirmed by the results from the Classic Carbon<br />

model: when significant investments are made<br />

in wind, the congestion rent (i.e. the cable income)<br />

increases on most transmission lines. This is also<br />

something one would expect: with more volatility in<br />

the system, there is a need for further interconnection<br />

in order to be better able to balance the system. In the<br />

model’s assumptions, total EU transmission capacities<br />

have been increased from today to 2020 by about<br />

15 Within a given country, the model assumes there are no transmission bottlenecks. Internal transmission and distribution losses,<br />

however, are accounted for by using linear loss functions, with user specified parameters. A loss function represents the loss (cost in<br />

money or loss in utility) associated with an estimate being “wrong” (different from the given capacity as a true value) as a function<br />

of a measure of the degree of wrongness (generally the difference between the estimated value and the true or desired value.)<br />

Reference<br />

Poland<br />

<strong>Wind</strong><br />

<strong>Powering</strong> <strong>Europe</strong>: wind energy and the electricity grid

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