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HomeStudy on regulatory matters concerning the development of the North Sea offshore energy potential
Study on regulatory matters concerning the development of the North Sea offshore energy potential
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The exploitation of wind energy resources from offshore generation in the North and Irish Sea represents an opportunity for the European Union to increase the share of renewable energy generation and, at the same time, support the economic growth and the creation of sustainable jobs. The deployment of the offshore grid energy potential relies on the different grid configurations that can be implemented for connecting the generation plants to the national grid systems; in this regard, several studies revealed that a combined approach (i.e. linking the wind farms to shore and connecting the electricity markets of coastal States through a meshed connection) ensures greater efficiency over connecting wind farms to shore on a country-based level. To date, the offshore grid assets have been developed by means of voluntary bilateral agreements between national governments, and no multilateral infrastructures have been planned and constructed so far, resulting in a set of point-to-point connection corridors among the North and Irish Sea’s region, i.e. an offshore grid of interconnections. Furthermore, it can be expected that the coordinated development of interconnections between the bordering countries and the mitigation of regulatory risks can support the integration of electricity markets in the region and reduce price differentials. However, to achieve the overall benefits outlined above, a strong commitment is required from all the countries in the region. In this regard, in December 2010, 10 Countries signed a Memorandum of Understanding, declaring their common intent towards the exploitation of the energy sources in the North and Irish Sea for low-carbon economy and security of supply. The same document launched NSCOGI, whose working groups are coordinated by the Steering Committee, ENTSO-E, ACER and the national regulatory authorities. Despite the efforts previously described, to date the 10 Countries involved present substantially different positions, which are hindering the development of the offshore grid. The main challenges to joint projects and to the development of the offshore grid energy potential are represented by the differences in the national regulatory frameworks and in the interpretations of the European Law, as well as by an uncertain distribution of costs and benefits among the market players involved. The consortium composed by PwC, Tractebel Engineering and Ecofys has been commissioned by the European Commission to undertake a comprehensive Study to: Identify and understand the existing regulatory barriers, which prevent or hinder the large scale development of a North and Irish Sea energy system ; Develop a set of workable regulatory models, which would enable a coordinated development of an offshore grid, comprising a mix of interconnectors and offshore generation connections ; Identify and sequence the legal, regulatory and policy activities to implement the suitable regulatory models, supporting coordinated development of an offshore grid.
- Published:
- Corporate author(s): Directorate-General for Energy (European Commission) , Ecofys , PWC , Tractebel Engineering
- Themes: Renewable sources of energy
- Subject: economic growth , energy grid , energy law , energy policy , Irish Sea , job creation , North Sea , renewable energy , wind energy
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| ISSN | ISBN 978-92-79-57246-3 | DOI 10.2833/987989 | Catalogue number MJ-04-16-250-EN-N |
- Released on EU Publications:
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