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Annex d – details of results<br />

table 13.4: tested mesh <strong>in</strong>teRcOnnectORs<br />

case country From name country to name MW Voltage technology Mesh design<br />

h_1 NL IJmuiden Hub 03 DE Gaia Group 1,000 500 HVDC VSC -<br />

h_2 NO Idunn DE Gaia Group 1,000 500 HVDC VSC -<br />

h_3 NO Idunn SE Skogssater 1,000 500 HVDC VSC -<br />

h_4 NL IJmuiden Hub 03 BE Zeebrugge 1,000 500 HVDC VSC Direct + Split<br />

h_5 NO Idunn DE Gaia Group 2,000 500 HVDC VSC -<br />

h_6 NO Lista NO Idunn 2,000 500 HVDC VSC Split<br />

h_7 NL IJmuiden Hub 03 DE Gaia Group 2,000 500 HVDC VSC -<br />

h_8 NL Oterleek BE Zeebrugge 1,000 500 HVDC VSC -<br />

h_9 NO Lista SE Skogssater 1,000 500 HVDC VSC Direct<br />

h_10 NO Idunn GB Dogger Bank E 1,000 500 HVDC VSC Direct<br />

h_11 GB Dogger Bank E NL IJmuiden Hub 3 1,000 500 HVDC VSC Split<br />

h_12 NO Idunn GB Dogger Bank E 2,000 500 HVDC VSC Split<br />

h_13 GB Dogger Bank E NL IJmuiden Hub 3 2,000 500 HVDC VSC -<br />

h_14 GB Dogger Bank E DE Gaia Group 2,000 500 HVDC VSC -<br />

h_15 DE Gaia Group DE<br />

Globaltech<br />

Group<br />

1,000 500 HVDC VSC -<br />

h_16 NL IJmuiden Hub 03 NL IJmuiden Hub 2 1,000 500 HVDC VSC -<br />

h_17 GB Dogger Bank E GB Dogger Bank C 1,000 500 HVDC VSC Split<br />

h_18 SE<br />

Södra<br />

Midsjöbanken<br />

LT Klaipeda 1,000 320 HVDC VSC -<br />

h_19 DE<br />

Arkona-Becken<br />

Südost<br />

words electricity is bought where it is cheapest and<br />

it is sold where it can be sold for the highest price.<br />

If <strong>in</strong>terconnection capacity would be unlimited, the<br />

wholesale market price levels would be equal across<br />

<strong>Europe</strong>. However the limited <strong>in</strong>terconnection capacity<br />

between countries limits the trade and the prices cannot<br />

be fully levelled. The price differences thus reflect<br />

the price for transmission capacity between countries.<br />

If new <strong>in</strong>terconnect<strong>in</strong>g l<strong>in</strong>es are built either on- or offshore,<br />

the trad<strong>in</strong>g volumes are <strong>in</strong>creased and price<br />

levels differences are reduced. One could also <strong>in</strong>terpret<br />

it as follows: the supply curve of <strong>in</strong>terconnection<br />

capacity is <strong>in</strong>creased and therefore the price for it is<br />

reduced.<br />

In particular new transmission capacities allow the<br />

electricity to be produced where the production costs<br />

are lowest and therefore additional transmission<br />

capacity can lower the overall electricity generation<br />

costs. This system cost reduction is considered as<br />

the benefits of the transmission capacity that has to<br />

be compared with the <strong>in</strong>frastructure cost <strong>in</strong> order to<br />

determ<strong>in</strong>e the net benefits.<br />

SE<br />

Södra<br />

Midsjöbanken<br />

1,000 320 HVDC VSC -<br />

In order to assess this task the price levels between<br />

all countries were listed and the highest price levels<br />

were identified. This sorted list of highest price differences<br />

between countries was used as an <strong>in</strong>dicator for<br />

the most beneficial <strong>in</strong>terconnections. As detailed <strong>in</strong><br />

chapter 4.5 the <strong>Offshore</strong>Grid consortium tested two<br />

methodologies. The Direct Design approach and the<br />

Split Design approach:<br />

• The Direct Design approach starts from the Hub<br />

Base Case scenario 2030 and adds direct <strong>in</strong>terconnections<br />

between the countries. In the next step<br />

hub-to-hub connections and f<strong>in</strong>ally meshed grid elements<br />

are added.<br />

• The Split Design equals the Direct Design, but<br />

<strong>in</strong> the first step the direct <strong>in</strong>terconnections are<br />

mirrored with split w<strong>in</strong>d farm connections (s. chapter<br />

4.3.1) where beneficial.<br />

At each of these steps the price levels between the<br />

countries are changed. This is displayed for the direct<br />

approach <strong>in</strong> Table 13.6 and for the Split Design approach<br />

<strong>in</strong> Table 13.5.<br />

138 <strong>Offshore</strong>Grid – F<strong>in</strong>al Report

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