1 / 14

Cost benefit Analysis of Developing Offshore Windfarms in Conjunction with Interconnectors

Cost benefit Analysis of Developing Offshore Windfarms in Conjunction with Interconnectors. European Offshore Wind Stockholm September 14 th , 2009 Joe Corbett, Head of Asset Engineering. Why Interconnection. Capacity Factor Offshore Wind 40% Expensive Unused Capacity Security of Supply

amil
Download Presentation

Cost benefit Analysis of Developing Offshore Windfarms in Conjunction with Interconnectors

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Cost benefit Analysis of Developing Offshore Windfarms in Conjunction with Interconnectors European Offshore Wind Stockholm September 14th , 2009 Joe Corbett, Head of Asset Engineering

  2. Why Interconnection • Capacity Factor • Offshore Wind 40% • Expensive Unused Capacity • Security of Supply • Lower Risk • Increased Competition

  3. Interconnection Advantages • Allowing the variation in renewables output to be smoothed • Providing the ability to source least cost generation from amongst different countries • Enhancing security of supply by providing additional sources of power • Enabling peaks in demand to be met from imports of power • Providing access to energy storage facilities • Allowing access to more cost effective sources of ancillary services

  4. Interconnection Example

  5. Marginal Cost of an Interconnection UK Germany 20km 100km 100km 100km 50km

  6. Potential Revenue GB-DE Interconnection

  7. How Much Would Super Grid Cost? • Recent UK OFTO valuations provide some context • Just over €350 - 500M per GW of Wind for offshore grid • Mainstream Model • Assume Super Regulator • Assume Super Operator • Regulated Income = 10% RoE • 21 GW Offshore Wind Connected in Stages • Calculate Use of System (TUOS) if Wind must Pay

  8. Supergrid Phase 1

  9. Base Case Analysis • Calculate Use of System Charge (TUOS) for 21 GW of Wind assuming: • Standard Project Finance • 70:30 Gearing • 20 Year Debt • 25 year Life • Losses 4% • Inflation 2%

  10. Model Characteristics

  11. Sensitivity Analysis

  12. Work to be Done • Technical Work • Now there’s a market! • Capacity • Cost • Innovation • Regulatory Framework • EU Commission • ENTSO-E

  13. Conclusions • Europe needs: • Energy Security • Reduce fossil dependence • Develop where Resource not Constrained • Deliver to Consumers • Offshore Wind will be Key • Interconnection makes sense: • Technically • Economically • Competition • Reduce Cost to End-Users • Supergrid Costs • TUOS ~ €35 / MWh • Will Reduce when other players given access to Capacity

  14. ? European Offshore Wind Stockholm September 14th , 2009 Joe Corbett, Head of Asset Engineering

More Related