and the European offshore electricity grid Justin Wilkes Policy Director The European Wind Energy Association More than 700 members from almost 60 countries Manufacturers with a leading share of the global wind power market ID: 284809
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Slide1
Iceland
and the European offshore electricity grid
Justin Wilkes
Policy Director
The European Wind Energy AssociationSlide2
More
than
700
members
from
almost
60 countries
Manufacturers
with a leading share of the global wind power market
Component suppliers
Research institutes
National wind and renewable associations
Developers
Electricity providers
Finance and insurance companiesConsultantsContractors
This combined strength makes EWEA the world’slargest and powerful wind energy network
www.ewea.org
/membershipSlide3
EWEA Lead SponsorsSlide4
Tackling the flexibility challenge
Variability
is an inherent
characteristic of every
power system
Flexible
generation is largely
provided
by gas, hydro and to a lesser extent biomass
Large
scale
DSM and new
energy storage
remain
unavailable in
the short term
An economically viable power system with large amounts of RES will require changes in all 3 areasSource: IEA 2011, Harnessing Variable Renewables Slide5
Momentum for grid development
in Europe is evident
Already in September 2009 EWEA published its “Offshore Network Development Master Plan”
North Seas Countries Offshore Grid Initiative signed by 10 countries in 2010 –
ongoing work
Offshore Grid is a key part of the European Infrastructure Package Second ENTSO-E 10-year network development plan in the makingSlide6
Prominent grid infrastructure projects:
UK/Norway
under consideration
NorGer - Germany/Norway ministerial agreementKrieger’s Flak (Germany – Sweden and Denmark on hold) with EERP financingCobra cable (Netherlands/Denmark) with EERP financing East-West interconnector, EIB loan (Ireland/Wales)
BritNed, EIB loan (UK/Netherlands)Skagerrak 4 (Denmark/Norway)Slide7
Global cumulative wind power capacity
1990-2007 (MW)
EWEA’s 20 year offshore network development plan
All necessary grid updates to transport all electricity produced by planned, proposed, under construction and operating offshore wind farms to European electricity consumers in an economically sound way
Recommends building a transnational offshore grid infrastructure to connect:
40 GW by 2020
150 GW by 2030Slide8
Global cumulative wind power capacity
1990-2007 (MW)
EWEA’s 20 year offshore network development plan
Based on:
Existing TSO plans
TradeWind scenarios
Added value of plan:- Provides step by step timetable for grid development Suggested capacities Integrated with development/concession zonesSlide9
Lines/branches:
submerged HVDC cables characterised by transmission capacity,
Offshore nodes:
offshore platforms containing HVDC conversion equipment, switchgear etc. to serve as:
common connection points for a number of offshore wind farms; common connection points for a number of other marine generators; and
intersection (junctions) of network branches.
Onshore nodes:
connection points to interconnect the offshore transmission grid to the onshore transmission grid.Offshore grid designSlide10
Global cumulative wind power capacity
1990-2007 (MW)
EWEA’s 20 year offshore network development plan
Source: EWEA 2009Slide11
EWEA concept one of manySlide12
Global cumulative wind power capacity
1990-2007 (MW)
Building the European offshore grid
Predictable energy output
Connections to more than one country
Power trading between countries
Viable alternative to onshore grid construction
Connection to other marine renewable energy sources
More economical utilisation of grid through shared use
More energy security
More interconnection capacity means more firm power
Build a single European electricity market to benefit all
consumers
BUT: Iceland not yet part of these considerations
BenefitsSlide13
Current EU approach to
facilitate grid developments
Current TEN-E programme is insufficient -
COM investment estimates 2010-2020:Electricity: 140 bn € (onshore, offshore and smart
grids at transmission and distribution level)Gas: 70 bn €
TEN-E budget 2007-2013 was increased from 155 mln € to currently 5.1bn € 2014-2020 in the „Connecting Europe Facility“ and revised guidelines on TEN-E Slide14
Agreement on
Trans-European
Networks
Main elements: Priority infrastructure corridors agreed – all renewables focussedNorthern Seas offshore gridNorth-South electricity interconnections in Western
EuropeNorth-South electricity interconnections in Central Eastern and South Eastern EuropeBaltic Energy Market Interconnection Plan in electricityPriority thematic areas agreedelectricity highwayssmart grids
national/regional TSO coordination (along the lines of CORESO, CECRE)PICs and PTAs have:Permitting and planning deadlines of 3 ½ years (binding...)
Access to CEF/TEN-E fundingSlide15
A
European
Offshore/Supergrid
What is needed
from the European stakeholders (+TSOs and Regulators):
A European approach towards an optimised European electricity system should be promoted.Acknowledge that a European Offshore/Supergrid
will be beneficial rather than costly for consumers.Design and implement schemes that favour investment decisions, and ensure a cost recovery for the investors, especially on cross-border projects, which require a more coordinated approach.
Coordination is critical for tackling the challenges of potential distortions created by different interconnection regimes.Slide16
Recommendations for Iceland
Explore bilateral cooperation possibilities in energy policy in general
Particularly with the UK (in progress)
Make best use of regional cooperation fora North Seas Countries Offshore Grid InitiativeENTSO-E regional group for North Sea grid developmentUse EU legislationRenewable Energy Directive 2009/28 cooperation mechanisms Slide17
Recommendations for Iceland
Explore business case for electricity exports to UK
Explore feasibility of HVDC interconnectors
Address technology challengeAddress financial riskSlide18
Ongoing challange: How
to create a facilitating environment for private and public investments in energy
infrastructure in the EU
Issue for TSOs/private investors: Most interconnectors might have good business case, but access to equity is difficultPrivate investors often lack awareness on why investments in energy infrastructure are viable (low ROR, but also low risk, especially interesting for institutional investors)Environment slowly changing: e.g. Mitsubishi engagement in Tennet to jointly invest in four offshore grid connections in Germany
Need to create a better investment framework for
infrastructure Investments: recognised in
the European Infrastructure PackageTEN-E budget should be used to leverage private finance,
be that EC Project bonds or equity, rather than grantsSlide19
EWEA’s next 20 Year Offshore Network Development Plan?Slide20
Thank you
www.ewea.org
EWEA
80
RUE D’ARLON
B-1040 BRUSSELS
T: +32 2
213 1811
F: +32 2 213 1890E: ewea@ewea.org