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Powering Europe - European Wind Energy Association

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7 Annex: principles of power balancing<br />

in the system 92<br />

chapter4<br />

Upgradingelectricitynetworks–<br />

challengesandsolutions 95<br />

1 Drivers and barriers for network upgrades 96<br />

2 Immediate opportunities for upgrade:<br />

optimal use of the network 99<br />

3 Longer term improvements to <strong>Europe</strong>an<br />

transmission planning 101<br />

3.1 Recommendations from <strong>Europe</strong>an studies 101<br />

4 Offshore grids 106<br />

4.1 Drivers and stepping stones 106<br />

4.2 Technical issues 108<br />

4.3 Policy issues 110<br />

4.4 Regulatory aspects 110<br />

4.5 Planning 110<br />

5 Costs of transmission upgrades and who<br />

pays for what 112<br />

5.1 Cost estimates 112<br />

5.2 Allocating grid infrastructure costs 113<br />

6 More active distribution networks 114<br />

7 A holistic view of future network<br />

development: smart grids 116<br />

8 Summary 117<br />

chapter5<br />

electricitymarketdesign 119<br />

1 Introduction 120<br />

2 Barriers to integrating wind power into<br />

the power market 121<br />

 <br />

3 Developments in the <strong>Europe</strong>an electricity<br />

market 123<br />

3.1 Liberalised national markets 123<br />

3.2 <strong>Europe</strong>an integration assisted by<br />

interconnection 124<br />

3.3 Legal framework for further liberalisation<br />

of the <strong>Europe</strong>an electricity market 125<br />

4 <strong>Wind</strong> power in the <strong>Europe</strong>an internal<br />

electricity market 126<br />

4.1 Current market rules in EU Member<br />

States 126<br />

4.2 Economic benefits of proper market rules<br />

for wind power integration in <strong>Europe</strong> 127<br />

5 Summary 128<br />

chapter6<br />

themeritordereffectoflarge-scale<br />

windintegration 131<br />

1 Background 132<br />

2 Introduction 134<br />

2.1 Summary of literature survey 136<br />

3 Summary of findings 138<br />

4 Methodology 140<br />

4.1 Approach 140<br />

4.2 Modelling 142<br />

5 Analysis 144<br />

5.1 Modelling results 144<br />

5.2 Sensitivities 155<br />

6 Conclusion 162<br />

7 Annex 164<br />

7.1 Assumptions in the model 164<br />

7.2 Model description 167<br />

References, glossary and abbreviations 171<br />

3

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