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Report / Electricity

Economic framework for a meshed offshore grid

Author(s): BHAGWAT Pradyumna, KEYAERTS Nico, LIND Leandro, MEEUS Leonardo, SCHITTEKATTE Tim

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ABSTRACT

Work Package 7 (WP7) of the Progress on Meshed HVDC Offshore Transmission Networks (PROMOTioN) Horizon 2020 project focuses on various legal, financial and economic aspects of developing an integrated offshore infrastructure. Task 7.2 focuses on the development of an economic framework for the offshore grid in terms of three building blocks, namely: planning, investment, and operation. 1. Offshore grid planning comprises three topics, namely: Cost-Benefit Analysis (CBA) methods, on-shore off-shore coordination, and public participation. 2. Offshore grid investment comprises four topics: cooperation mechanisms for renewable support, transmission tariffs, investment incentives, and Cross-Border Cost Allocation (CBCA) methods. 3. Offshore grid operation focuses on the balancing mechanism in the offshore wind context. This final report extends our intermediate report with the addition of three new topics: incentives, CBCA and the balancing mechanism. The remaining chapters are identical to the intermediate report. In this section, we provide a summary of the research that has been undertaken so far and the main conclusions from our analysis.