North Sea Energy Islands: Impact on national markets and grids

Andrea Tosatto, Xavier Martínez Beseler, Jacob Østergaard, Pierre Pinson and Spyros Chatzivasileiadis

Energy Policy, 2022, vol. 167, issue C

Abstract: Taking concrete steps towards a carbon-free society, the Danish Parliament has recently approved the establishment of the world’s first two offshore energy hubs on Bornholm and on an artificial island in the North Sea. Being the two first-of-their-kind projects, several aspects related to the inclusion of these “energy islands” in the current market setup are still under discussion. To this end, this paper presents a first large-scale impact analysis of offshore hubs on the whole European power system and electricity market. Our study shows that energy hubs in the North Sea contribute to increase social welfare in Europe. However, when considering the impact on each country, benefits are not shared equally. To help the development of such projects, we focus on the identification of the challenges arising from the hubs. From a market perspective, we show how exporting countries are affected by the lower electricity prices and we point at heterogeneous consequences induced by new transmission capacity installed in the North Sea. From a system point of view, we show how the large amount of wind energy stresses conventional generators, which are required to become more flexible, and national grids, which cannot always accommodate large imports from the hubs.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030142152200132X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:167:y:2022:i:c:s030142152200132x

DOI: 10.1016/j.enpol.2022.112907

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().