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