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Expansion planning of the North Sea offshore grid: Simulation of integrated governance constraints

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  • Gorenstein Dedecca, João
  • Lumbreras, Sara
  • Ramos, Andrés
  • Hakvoort, Rudi A.
  • Herder, Paulien M.

Abstract

The development of offshore transmission and wind power generation in the North Sea of Europe is advancing fast, but there are significant barriers to an integrated offshore grid in the region. This offshore grid is a multi-level, multi-actor system requiring a governance decision-making approach, but there is currently no proven governance framework for it, or for the expansion planning of the European power system in general. In addition, existing offshore expansion planning models do not endogenously include governance considerations, such as country vetoes to integrated lines. We develop a myopic Mixed-Integer Linear Programming model of offshore generation and transmission expansion planning to study the effect of integrated governance constraints. These constraints limit investments in integrated lines: non-conventional lines linking offshore wind farms to other countries or to other farms. Each constraint affects the system (including the main transmission corridors), transmission technologies and welfare distribution differently. We apply our model to a long-term case study of the 2030–2050 offshore expansion pathways using data from the e-Highway2050 project. Results confirm that the offshore grid is beneficial to society. Integrated governance constraints induce a modest loss of social welfare, but do not change significantly the existing welfare distribution asymmetry between countries and actor groups. They do strongly affect the interaction of line technologies and types (conventional or integrated), so the impact of the integrated governance constraints is more visible on the grid topology than on welfare levels and distribution. We highlight the need to consider technology and type interactions in expansion planning, especially between multiterminal HVDC and integrated transmission lines. Also, an offshore governance framework should address the use of multiterminal HVDC in a non-integrated grid, but this is a second-best option compared to an integrated grid.

Suggested Citation

  • Gorenstein Dedecca, João & Lumbreras, Sara & Ramos, Andrés & Hakvoort, Rudi A. & Herder, Paulien M., 2018. "Expansion planning of the North Sea offshore grid: Simulation of integrated governance constraints," Energy Economics, Elsevier, vol. 72(C), pages 376-392.
    • Handle: RePEc:eee:eneeco:v:72:y:2018:i:c:p:376-392
    DOI: 10.1016/j.eneco.2018.04.037
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    2. Deniz Sun & Luis Olmos & Michel Rivier, 2020. "Considering Local Air Pollution in the Benefit Assessment and Cost Allocation of Cross Border Transmission Projects," Energies, MDPI, vol. 13(6), pages 1-20, March.
    3. Gea-Bermúdez, Juan & Pade, Lise-Lotte & Koivisto, Matti Juhani & Ravn, Hans, 2020. "Optimal generation and transmission development of the North Sea region: Impact of grid architecture and planning horizon," Energy, Elsevier, vol. 191(C).
    4. da Silva, Vinícius Oliveira & Relva, Stefania Gomes & Mondragon, Marcella & Mendes, André Bergsten & Nishimoto, Kazuo & Peyerl, Drielli, 2023. "Building Options for the Brazilian Pre-salt: A technical-economic and infrastructure analysis of offshore integration between energy generation and natural gas exploration," Resources Policy, Elsevier, vol. 81(C).
    5. Martin Kristiansen & Francisco D. Muñoz & Shmuel Oren & Magnus Korpås, 2018. "A Mechanism for Allocating Benefits and Costs from Transmission Interconnections under Cooperation: A Case Study of the North Sea Offshore Grid," The Energy Journal, , vol. 39(6), pages 209-234, November.
    6. Wiegner, J.F. & Andreasson, L.M. & Kusters, J.E.H. & Nienhuis, R.M., 2024. "Interdisciplinary perspectives on offshore energy system integration in the North Sea: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    7. Martínez-Gordón, R. & Morales-España, G. & Sijm, J. & Faaij, A.P.C., 2021. "A review of the role of spatial resolution in energy systems modelling: Lessons learned and applicability to the North Sea region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    8. Jan F. Wiegner & Madeleine Gibescu & Matteo Gazzani, 2024. "Unleashing the full potential of the North Sea -- Identifying key energy infrastructure synergies for 2030 and 2040," Papers 2411.00540, arXiv.org.
    9. Qu, Chunzi & Bang, Rasmus Noss, 2024. "European Grid Development Modeling and Analysis: Established Frameworks, Research Trends, and Future Opportunities," Discussion Papers 2024/11, Norwegian School of Economics, Department of Business and Management Science.
    10. Tosatto, Andrea & Beseler, Xavier Martínez & Østergaard, Jacob & Pinson, Pierre & Chatzivasileiadis, Spyros, 2022. "North Sea Energy Islands: Impact on national markets and grids," Energy Policy, Elsevier, vol. 167(C).
    11. Glaum, Philipp & Neumann, Fabian & Brown, Tom, 2024. "Offshore power and hydrogen networks for Europe’s North Sea," Applied Energy, Elsevier, vol. 369(C).
    12. Zhang, Mingming & Nie, Jinchen & Su, Bin & Liu, Liyun, 2024. "An option game model applicable to multi-agent cooperation investment in energy storage projects," Energy Economics, Elsevier, vol. 131(C).

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    More about this item

    Keywords

    Expansion planning; Governance; Simulation; North Sea; Offshore grid; Offshore wind;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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