Regional Coordination in Grid Expansion With Offshore Wind: The Case of the Baltic Sea Region
2019
The development of offshore wind in the Baltic Sea Region is expected to contribute to the renewable energy capacity, consequently leading to an expansion of the offshore and onshore grid among the countries in the region. The establishment of new hybrid architectures such as meshed offshore grids, directly connecting offshore wind farms to interconnectors, potentially contributes to taking full advantage of future grid expansions. However, the fact that each country designed their power systems decades ago when regional coordination was not in focus, can potentially destabilise joint efforts if the benefit of the new hybrid infrastructure is not represented also at a national level. In this paper we assess the impact of wind development in the region in a radial vs. hybrid scenario depending on the budget available for the expansion. Furthermore, we identify the specific challenges relative to investment cost distribution and analyse several regulatory frameworks that mitigate the ripple effect of the investment decisions of each country. Finally, we formulate policy recommendations to overcome the investment barrier and suplport coordination in joint regional grid investment.
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