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

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conclusions and recommendations<br />

• However the <strong>in</strong>vestigation has shown that the ideal<br />

hub-to-hub connection design takes <strong>in</strong>to account<br />

hub sizes and the expected electricity price levels<br />

at the very beg<strong>in</strong>n<strong>in</strong>g of the project plann<strong>in</strong>g. This<br />

way not only the hub-to-hub <strong>in</strong>terconnection capacity<br />

can be optimally dimensioned but also the<br />

hub-to-shore connections can take <strong>in</strong>to account<br />

electricity trade across the hub-to-hub connection.<br />

• To achieve this ideal case, a significant coord<strong>in</strong>ation<br />

effort is needed and the compatibility of the<br />

support schemes and regulatory frameworks with<strong>in</strong><br />

the different countries needs to be checked. The<br />

reason is that such an ideal long-term plann<strong>in</strong>g<br />

would require strong political and regulatory cont<strong>in</strong>uity<br />

to reduce <strong>in</strong>vestment risks. If, for <strong>in</strong>stance,<br />

the hub-<strong>in</strong>terconnection is not realised <strong>in</strong> the end,<br />

the ideal hub-to-shore connection capacity would of<br />

course be different and thus the design of these<br />

hubs without <strong>in</strong>terconnection would be suboptimal.<br />

• Such coord<strong>in</strong>ation can be steered <strong>in</strong> bilateral<br />

processes with support at <strong>Europe</strong>an level.<br />

6.4 Overall grid design<br />

Key results on overall grid design<br />

• Build<strong>in</strong>g direct <strong>in</strong>terconnections is valid and<br />

beneficial.<br />

• Tee-<strong>in</strong> connections, hub-to-hub connections and the<br />

special tee-<strong>in</strong> case of split w<strong>in</strong>d farm connections<br />

can significantly <strong>in</strong>crease the cost-efficiency of an<br />

offshore grid, and together form important and beneficial<br />

build<strong>in</strong>g stones for any offshore grid design.<br />

• The utilisation of offshore w<strong>in</strong>d farm (or hub) connections<br />

is <strong>in</strong>creased by build<strong>in</strong>g connections from<br />

the offshore w<strong>in</strong>d farm (or hub) to other countries<br />

or an <strong>in</strong>terconnected offshore grid.<br />

• An offshore grid allows a shift to cheaper power<br />

generation. Renewable energy <strong>in</strong> particular benefits<br />

from the additional offshore transmission capacity.<br />

• An offshore grid connects generation <strong>in</strong> <strong>Europe</strong> (<strong>in</strong><br />

particular w<strong>in</strong>d energy) to the large hydro power<br />

“storage” capacities <strong>in</strong> Northern <strong>Europe</strong>. This can<br />

lower the need for balanc<strong>in</strong>g energy with<strong>in</strong> the different<br />

<strong>Europe</strong>an regions.<br />

• Two offshore grid methodologies were assessed<br />

and used to come to a f<strong>in</strong>al design. The Direct<br />

Design builds first on direct <strong>in</strong>terconnections, and<br />

then <strong>in</strong>tegrated solutions and meshed l<strong>in</strong>ks are<br />

applied. The Split Design starts by build<strong>in</strong>g <strong>in</strong>terconnectors<br />

by splitt<strong>in</strong>g w<strong>in</strong>d farm connections, then<br />

<strong>in</strong>tegrated solutions and meshed l<strong>in</strong>ks are applied:<br />

– Splitt<strong>in</strong>g w<strong>in</strong>d farm connections to comb<strong>in</strong>e<br />

the offshore w<strong>in</strong>d connection with trade has<br />

proven to be more cost-effective than build<strong>in</strong>g<br />

direct <strong>in</strong>terconnectors only for trade. The average<br />

reduction of the CAPEX by choos<strong>in</strong>g a split<br />

connection over a direct <strong>in</strong>terconnector is over<br />

65%, while the reduction <strong>in</strong> system cost is only<br />

about 40% smaller on average. A comparison<br />

of the net benefit per <strong>in</strong>vested Euro of CAPEX<br />

revealed that when splitt<strong>in</strong>g w<strong>in</strong>d farm connections,<br />

each Euro <strong>in</strong>vested is spent 2.6 times<br />

more effectively.<br />

– Although less extreme, the absolute comparison<br />

also proved that the Split offshore grid<br />

design would be more efficient than the Direct<br />

offshore grid design. For a CAPEX of €4 bn <strong>in</strong><br />

both designs, the Split methodology leads to an<br />

extra reduction <strong>in</strong> system cost of 9% (€944 m<br />

over 25 years) compared to the Direct Design<br />

methodology.<br />

• The overall costs for the overall offshore grid design<br />

(Direct Design or Split Design) are about €85 bn.<br />

This <strong>in</strong>cludes <strong>in</strong>vestment costs for the Hub Base<br />

Case scenario as a start<strong>in</strong>g po<strong>in</strong>t which represents<br />

connection of 126 GW of offshore w<strong>in</strong>d as well as<br />

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

• The costs for a further <strong>in</strong>terconnected grid built on<br />

top of this Hub Base Case are only €7.4 bn for<br />

the Direct Design and €5.4 bn for the Split Design.<br />

These relatively small additional <strong>in</strong>vestments<br />

generate system benefits of €16 bn (Split Design)<br />

and €21 bn (Direct Design) across a lifetime<br />

of 25 years – benefits of about three times the<br />

<strong>in</strong>vestment.<br />

• The total circuit length of the overall grid design<br />

(Split or Direct) is about 30,000 km (10,000 km<br />

AC, 20,000 km DC).<br />

• Investments <strong>in</strong> offshore grid <strong>in</strong>frastructure have<br />

to be put <strong>in</strong>to relation to the offshore w<strong>in</strong>d energy<br />

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

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