1 Department of Management Engineering, Technical University of Denmark2 Systems Analysis, Department of Management Engineering, Technical University of Denmark3 Energy Systems Analysis, Systems Analysis, Department of Management Engineering, Technical University of Denmark
International offshore grids can combine the grid connection of offshore wind parks with the possibility for international power trading in the future. This paper investigates the choice of support scheme and power market design in international offshore grids and derives resulting incentives. For example, day-ahead market design could be chosen such that an offshore wind park is affiliated to a national country or placed in a neutral offshore hub. With regard to balancing, an offshore wind park's access to a specific country may be blocked due to interconnector congestion from power trading. Hence, a country's offshore wind park included in an international offshore grid faces a different economic situation than one which is only connected to its home country. It is argued that there is a redistributive effect between offshore wind park income, congestion rents of the interconnectors and necessary support. For a stable investment framework in the near future, a tendering/feed-in tariff may be the best choice. It avoids exposing wind farms to balancing with multiple countries. In the long run, also other support scheme options may be of interest.
10th International Conference on the European Energy Market (eem), 2013, 2013
Power, Energy and Industry Applications
Main Research Area:
10th International Conference on the European Energy Market, 2013