Market design for efficient transmission of offshore wind energy

A study commissioned by Ørsted Offshore Wind, published as DIW Berlin -Politikberatung kompakt 136.

The expansion of offshore wind energy is a strategic component of Germany’s energy and climate policy. Therefore, according to the targets of the German government, 15,000 MW of offshore wind energy capacity should be available in Germany by 2030. Suppose offshore wind energy is to make a successful contribution to the transformation of energy systems. In that case, it will be necessary not only to build offshore wind farms but also to transport the electricity produced efficiently on land.

In principle, three actors can be responsible for the offshore grid connection: the local TSO, the offshore wind farm operator (OWPB) or a third company. Design, construction and operation can be carried out by the same or two different parties (as in the UK for example).

The question therefore arises as to the advantages and disadvantages of open competitive tendering for the ONA and the effect of integrating the offshore wind farm (OWP) and ONA. The study shows how different market designs affect the cost efficiency of grid connection.

Article in the magazine “et – Energiewirtschaftliche Tagesfragen“, issue 7/8, pp. 21-24

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