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Towards an <strong>Offshore</strong> Grid – Further considerations<br />

and DE) under the <strong>in</strong>itiative of the Belgian M<strong>in</strong>ister<br />

of <strong>Energy</strong>, has evolved <strong>in</strong>to a political <strong>in</strong>itiative with<br />

all ten countries around the North and Irish Sea (BE,<br />

FR, NL, LU, DE, UK, IR, DK, SE and NO). The North<br />

Seas Countries’ <strong>Offshore</strong> Grid Initiative (NSCOGI)<br />

aims at coord<strong>in</strong>at<strong>in</strong>g, on a multilateral level, offshore<br />

w<strong>in</strong>d and <strong>in</strong>frastructure developments <strong>in</strong> the North<br />

Sea. It is more specifically targeted at achiev<strong>in</strong>g a<br />

common political and regulatory basis on offshore <strong>in</strong>frastructure<br />

development with<strong>in</strong> the region. A common<br />

Memorandum of Understand<strong>in</strong>g between all parties<br />

has been signed at the end of 2010 [39]. Much is<br />

expected from this <strong>in</strong>itiative for the facilitation of real<br />

developments. In this framework, TSOs will carry<br />

out a cost-benefit analysis by December 2012. The<br />

<strong>Offshore</strong>Grid consortium is <strong>in</strong> regular contact with<br />

Work<strong>in</strong>g Group 1 of the NSCOGI on Grid Configuration.<br />

The prelim<strong>in</strong>ary outcomes have been presented to this<br />

work<strong>in</strong>g group, and a session on the f<strong>in</strong>al results will<br />

be held <strong>in</strong> October 2011.<br />

Industry level<br />

As imposed by law under the Third Legislative<br />

Package on <strong>Europe</strong>an <strong>Electricity</strong> and Gas Markets<br />

[40], <strong>Europe</strong>an Transmission Grid Operators (TSOs)<br />

for electricity have united under ENTSO-E [41]. This<br />

organisation improves cooperation across national<br />

borders, and is thus crucial for the development of<br />

offshore electricity grids. With<strong>in</strong> ENTSO-E, two work<strong>in</strong>g<br />

groups are relevant <strong>in</strong> this respect:<br />

• Regional Work<strong>in</strong>g Group North Sea under the<br />

System Development Committee,<br />

• WG 2050/Supergrid under the System Development<br />

Committee.<br />

The regulators cooperate voluntarily via the Council of<br />

<strong>Europe</strong>an <strong>Energy</strong> Regulators (CEER). A key objective of<br />

the CEER is to facilitate the creation of a s<strong>in</strong>gle, competitive,<br />

efficient and susta<strong>in</strong>able EU <strong>in</strong>ternal energy<br />

market that works <strong>in</strong> the public <strong>in</strong>terest. The <strong>Europe</strong>an<br />

Regulators’ Group for <strong>Electricity</strong> and Gas (ERGEG) was<br />

set up by the <strong>Europe</strong>an Commission <strong>in</strong> 2003 as its advisory<br />

body on <strong>in</strong>ternal energy market issues. ERGEG<br />

launched 7 <strong>Electricity</strong> Regional Initiatives (ERI, [9]),<br />

with the aim to speed up the <strong>in</strong>tegration of <strong>Europe</strong>’s<br />

national electricity markets. Under the <strong>Europe</strong>an<br />

Commission’s Third Package [40], all <strong>Europe</strong>an regulators<br />

are now united <strong>in</strong> the Agency for the Cooperation<br />

of <strong>Energy</strong> Regulators (ACER, dissolv<strong>in</strong>g ERGEG). ACER<br />

was created <strong>in</strong> 2010, as imposed by the 3rd package,<br />

to fill the regulatory gap on cross-border issues<br />

and should oversee the cooperation between the<br />

TSOs. Although there are various challenges to face<br />

on regulatory level (cost allocation and profit marg<strong>in</strong>s,<br />

compatibility <strong>in</strong> renewable energy support, etc.), action<br />

on offshore grid issues on the regulator’s side is<br />

currently very limited.<br />

F<strong>in</strong>ally, the <strong>in</strong>itiative ‘The Friends of the Supergrid<br />

(FOSG)’ [42] comb<strong>in</strong>es companies <strong>in</strong> sectors that will<br />

deliver the HVDC <strong>in</strong>frastructure and related technology<br />

with companies that will develop, <strong>in</strong>stall, own and<br />

operate that <strong>in</strong>frastructure. They have jo<strong>in</strong>ed because<br />

of a mutual <strong>in</strong>terest <strong>in</strong> promot<strong>in</strong>g and <strong>in</strong>fluenc<strong>in</strong>g the<br />

regulatory and policy framework that is required to enable<br />

large-scale <strong>in</strong>terconnection <strong>in</strong> <strong>Europe</strong>.<br />

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

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