03.12.2012 Views

Offshore Electricity Infrastructure in Europe - European Wind Energy ...

Offshore Electricity Infrastructure in Europe - European Wind Energy ...

Offshore Electricity Infrastructure in Europe - European Wind Energy ...

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

esults<br />

• Costs and benefits of the Hub Base Case scenario<br />

2030<br />

The costs for the offshore w<strong>in</strong>d farm connections<br />

are significantly reduced <strong>in</strong> the Hub Base Case scenario.<br />

As a large number of w<strong>in</strong>d farms is connected<br />

with cost efficient hub design concepts, the overall<br />

<strong>in</strong>frastructure costs are decreased by €14 bn to<br />

€78 bn (<strong>in</strong>cl. TYNDP <strong>in</strong>terconnectors). However the<br />

hub design connections do not build new transmission<br />

corridors between countries, therefore the<br />

annual power system generation costs rema<strong>in</strong> at<br />

the high level and no generation costs benefits are<br />

produced.<br />

• Costs and Benefits of the Direct Design scenario<br />

and the Split design scenario<br />

The direct and Split Designs are built on the Hub<br />

Base Case scenario 2030. Additional grid <strong>in</strong>frastructure<br />

is added: direct <strong>in</strong>terconnections,<br />

hub-to-hub <strong>in</strong>terconnections, tee-<strong>in</strong> <strong>in</strong>terconnections<br />

and meshed grid designs. As additional<br />

<strong>in</strong>frastructure is added <strong>in</strong> both cases the costs are<br />

<strong>in</strong>creased compared to the Hub Base Case scenario.<br />

The overall costs of the Direct Design offshore<br />

grid amount to €86 bn. The Split Design offshore<br />

grid is €2 bn less expensive and costs €84 bn <strong>in</strong><br />

total. At the same time the annual system generation<br />

costs are largely decreased as both designs<br />

add new electricity trad<strong>in</strong>g capacity to the system.<br />

The annual benefits of €1.02 bn (Split Design) and<br />

€1.3 bn (Direct Design) amount to a net present<br />

value benefit of €16 bn (Split Design) and €21 bn<br />

(Direct Design) across a lifetime of 25 years.<br />

• The additional <strong>in</strong>frastructure costs to develop the<br />

Direct or Split Design on top of the Hub Base Case<br />

scenario 2030 are relatively low. They represent<br />

only 7% (Split Design) to 9% (Direct Design) of the<br />

Hub Base Case w<strong>in</strong>d farm connections and the<br />

ENTSO-E TYNDP <strong>in</strong>terconnectors. At the same time<br />

they generate large benefits of about three times<br />

the <strong>in</strong>vestments.<br />

The enormous <strong>in</strong>vestments <strong>in</strong>to offshore grid <strong>in</strong>frastructure<br />

have to be put <strong>in</strong>to relation to the offshore<br />

w<strong>in</strong>d energy produced. The offshore w<strong>in</strong>d farms considered<br />

<strong>in</strong> <strong>Offshore</strong>Grid produce about 530 TWh annually<br />

which is about the annual consumption of Germany.<br />

Across 25 years this amounts to 13,300 TWh. Based<br />

on average spot market prices of €50/MWh, the value<br />

FIGURE 4.39: chANGE OF PROdUcTION PER TEchNOlOGY IN ENERGY MIX bY AddING ThE OvERAll OFFShORE GRId dESIGN<br />

(FOR ThE dIREcT dESIGN ANd ThE SPlIT dESIGN) [chANGE IN GWh/YEAR)<br />

Change <strong>in</strong> energy mix<br />

by add<strong>in</strong>g the overall<br />

offshore grid design<br />

(GWh/year)<br />

60,000<br />

50,000<br />

40,000<br />

30,000<br />

20,000<br />

10,000<br />

0<br />

-10,000<br />

-20,000<br />

-30,000<br />

Hydro<br />

Nuclear<br />

Lignite<br />

Hard Coal<br />

Split Design Direct Design<br />

Other RE<br />

76 <strong>Offshore</strong>Grid – F<strong>in</strong>al Report<br />

Gas<br />

Oil<br />

W<strong>in</strong>d

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!