This master's thesis examines the cost-efficient deployment of wind energy projects in Belgium through potential cross-border cooperation with Denmark. It first evaluates the differences in average costs of wind energy generation and carbon abatement costs between the two countries. It then discusses cooperation options, drivers, benefits, costs and barriers to identify conditions for achieving cost-efficient offshore wind deployment through cooperation mechanisms, as allowed under the EU Renewable Energy Directive. The analysis shows that while initial cost differences exist, cross-border cooperation does not necessarily lead to more cost-effective renewable development as costs and benefits are not equally shared between partner countries. An overall evaluation of cooperation is needed to determine if it provides net benefits.

1. F A C UL T Y O F S C I E N C E
UNIVE R S I TY OF C OP ENHAGEN
MSc programme in Environmental and Natural Resource Economics
Academic advisor: Peder Andersen
Submitted: 11/11/2014
Master’s thesis
Dionysia Adamantidou
Cost efficient deployment of wind energy projects in
Belgium and cross border cooperation
Cost efficient deployment of wind energy projects in Belgium and
cross border cooperation

2. 2
Abstract According to the Directive 2009/28/EC, the Member States are allowed to use cooperation mechanisms for the achievement of their “2020 national target” in the most cost effective way, when differences in technological costs between them have been identified. Reports of “RES4LESS” project have shown that if Belgium cooperates as a User country with Denmark as a Host for the deployment of renewable energy resources, there will be cost savings but there is not estimation of the cost saving for each renewable technology.
Under the above framework, this paper, firstly, using the method of cost effectiveness analysis evaluates the difference in the average costs of wind energy generation and the difference in the average abatement costs in both Member States and then discusses a potential cross border cooperation by presenting cooperation options, key drivers, benefits, costs and barriers in order to identify under which conditions can be achieved cost efficient deployment of offshore wind energy through the cooperation mechanisms.
The analysis showed that even though initially cost differences have been identified, it does not imply necessarily cost effective and efficient deployment of renewable energy resources as the use of the cooperation mechanisms entailed direct and indirect costs and benefits for both Member States which do not share equally and hence their overall evaluation it is necessary in order to decide if finally the cross border cooperation should be developed.