IEEE Power & Energy Magazine - July/August 2015 - 67

200

Transmission Losses
(% of Annual Energy Demand)
3.0%

180

2.5%

160
140

1.5%

80

1.0%

60

2,000

40

Uniform

Locational

Uniform

(b)

2029

2027

2025

2023

2021

2019

2017

2015

2013

0.5%
2011

2029

2025
2027

Locational
(a)

2023

2021

2019

2017

0
2015

0

2013

20
2011

1,000

0.0%

Locational

(c)

2027
2029

3,000

2023

100

2025

4,000

2.0%

2021

120

2017

5,000

2019

6,000

2015

7,000

2013

8,000

Transmission Constraint
Costs (2010 £Mn)

2011

Cumulative Transmission
Investment Costs (2010 £Mn)

Uniform

figure 5. Transmission system costs.

is also supported by the results obtained through the impact
assessment analysis.

Effects of Coordination Policies Across
Transmission Regimes in the North Seas

As the radial approach most closely resembles today's connection practices, it is chosen as the counterfactual, and costs
associated with other policy choices are presented in relation
to this approach. Furthermore, consideration of the extreme
case of energy neutrality in the counterfactual-member-state
centric rather than EU-wide energy system development-is
used to assess the benefits of full integration of the EU electricity market. Thus it is something of a caricature in that
countries are not exactly energy neutral, but deviations from
energy neutrality are relatively small. Recent analysis conducted by the EU commission demonstrates that, although the
market coupling is enhancing the energy exchange between
North Seas member states, larger countries are still broadly
energy neutral. In other words, the total energy imports/
exports are relatively small as a proportion of the total energy
consumption.

Offshore wind power is expected to make a significant
contribution toward decarbonizing the Great Britain and
European energy system. It is envisaged that today's
installed capacity levels of about 5 GW of offshore wind
generation may reach 150 GW by 2030, with approximately half of this capacity located in the North Seas.
Given Europe's goal of increased integration of the
power markets by expanding cross-border interconnectors, there is a significant opportunity to integrate offshore wind generation and interconnector projects in the
North Seas to take advantage of potentially significant
economies of scale and thus reduce network costs.
In this context, this section examines
table 2. Savings associated with system development
under status quo.
the benefits of different policy approaches
associated with different levels of coordinaUniform Charging
Improved ICRP Charging
tion and Great Britain-EU market integraVersus Status Quo
Versus Status Quo
£mn (NPV 2011-2030)
£mn (NPV 2014-2030)
tion among offshore wind generation and
interconnector projects in the North Seas,
Power purchase costs
13,899
1,717
as summarized in Table 3. These policy
Renewable subsidies
262
269
approaches range from a radial incremenLosses
4,082
687
tal approach, to more strategic approaches
Congestion/constraints 344
116
to integrating offshore wind generation
and increasing levels of market integration,
Demand transmission
1,182
769
ranging from limited (energy neutral and
investment charges
self-secure) to a fully integrated EU elecTotal
19,768
3,379
tricity market.
july/august 2015	

ieee power & energy magazine	67
Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - July/August 2015
