This document discusses different types of offshore transmission investments and how to best regulate them. It identifies three types - shore to shore, farm to shore, and combined solutions. For shore to shore investments, current regulation is economically unsound but problems also exist onshore. Farm to shore sees regulatory experimentation to adapt frameworks to stronger economic features. Combined solutions face significant difficulties under current frameworks. The EU could play both soft and strong roles to help address issues through various means like guidelines, support schemes, technology roadmaps, and transmission planning.
Legal innovation in submarine cable systemsMike Conradi
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Presentation to SubOptic2016. Discusses some legal innovations in the submarine cable sector including sales of spectrum rather than capacity, sale and leaseback of systems, the nature of an IRU and the new ACE Connect sales channel concept.
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The official launch of the Cross-sector Battery Systems Innovation Network took place on 28th September 2020.
This Network will be an open and collaborative cross-sectoral community for researchers and innovators in battery manufacturing; the related supply chain; and end-users. Tony Harper, Faraday Battery Challenge Director, delivered the opening remarks, who emphasised on the significant role that batteries can play to support Net Zero, potentially leading to decarbonising a wide range of sectors beyond automotive. This was followed by case studies on the benefits of batteries for rail, aerospace and defence.
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Scott McKenzie's presentation to the European Spectrum Management Conference in Brussels, June 2014, covering spectrum auction formats, issues, case studies, policy objectives and rules.
Horizon 2020 Green Deal: Information and Consortia Building Event Series, 29 ...KTN
Over 400 people attended this exciting webinar which provided background information on various call topics and on support available for both UK and European organisations in how to apply for funding and search for partners. KTN hosted this event on behalf of Innovate UK and was delivered by Louise Mothersole, UK Horizon 2020 UK National Contact Point Transport, Stafford Lloyd, UK Horizon 2020 National Contact Point ICT and FET, Jane Watkins, European Programmes Knowledge Transfer Manager, KTN, and Helen Sweeney, Horizon 2020 UK National Contact Point for Sustainable Agriculture and the Bioeconomy.
A big thank you to the Speakers, Organisers and everyone who attended the event!
Outcomes of the study from the Hydrogen MOBILITÉ France.
73% of hydrogen used is to be generated by the cleanest possible method: electrolysis by 2030. Electrolysis uses only water and renewable power and the hydrogen can be generated where it is required, therefore eliminating fossil fuels 100% in its production and delivery.
http://www.afhypac.org/images/documents/h2_mobilit_france_fr_final.pdf
In this webinar Leonardo Meeus (Part-time Professor Florence School of Regulation and Scientific coordinator THINK project) presents the THINK report on Cost Benefit Analysis in the context of the Energy Infrastructure Package. Leonardo explains the relevance of the CBA method in this package as well as the aim to develop a single CBA method to assess benefits and costs of Electricity Projects of Common Interest (CPIs).
Cross-sector Battery Systems Innovation Network | Launch eventKTN
The official launch of the Cross-sector Battery Systems Innovation Network took place on 28th September 2020.
This Network will be an open and collaborative cross-sectoral community for researchers and innovators in battery manufacturing; the related supply chain; and end-users. Tony Harper, Faraday Battery Challenge Director, delivered the opening remarks, who emphasised on the significant role that batteries can play to support Net Zero, potentially leading to decarbonising a wide range of sectors beyond automotive. This was followed by case studies on the benefits of batteries for rail, aerospace and defence.
There was a clear need to develop a community and extend the network to share knowledge around the challenges and opportunities associated with batteries for a broad range of sectors such as aerospace, rail, maritime, stationary storage and other niche applications. To learn more about upcoming activities, visit our page: https://ktn-uk.org/energy/batteries/
Scott McKenzie's presentation to the European Spectrum Management Conference in Brussels, June 2014, covering spectrum auction formats, issues, case studies, policy objectives and rules.
Horizon 2020 Green Deal: Information and Consortia Building Event Series, 29 ...KTN
Over 400 people attended this exciting webinar which provided background information on various call topics and on support available for both UK and European organisations in how to apply for funding and search for partners. KTN hosted this event on behalf of Innovate UK and was delivered by Louise Mothersole, UK Horizon 2020 UK National Contact Point Transport, Stafford Lloyd, UK Horizon 2020 National Contact Point ICT and FET, Jane Watkins, European Programmes Knowledge Transfer Manager, KTN, and Helen Sweeney, Horizon 2020 UK National Contact Point for Sustainable Agriculture and the Bioeconomy.
A big thank you to the Speakers, Organisers and everyone who attended the event!
Outcomes of the study from the Hydrogen MOBILITÉ France.
73% of hydrogen used is to be generated by the cleanest possible method: electrolysis by 2030. Electrolysis uses only water and renewable power and the hydrogen can be generated where it is required, therefore eliminating fossil fuels 100% in its production and delivery.
http://www.afhypac.org/images/documents/h2_mobilit_france_fr_final.pdf
In this webinar Leonardo Meeus (Part-time Professor Florence School of Regulation and Scientific coordinator THINK project) presents the THINK report on Cost Benefit Analysis in the context of the Energy Infrastructure Package. Leonardo explains the relevance of the CBA method in this package as well as the aim to develop a single CBA method to assess benefits and costs of Electricity Projects of Common Interest (CPIs).
The Energy Infrastructure Package that has recently been adopted in Europe foresees a new procedure to allocate the costs of Projects of Common Interest between EU Member States. This presentation provides guidance to project promoters and regulators for the implementation of this new procedure.
The European Commission has recently estimated the investment needs in energy (electricity and gas) infrastructure of European importance to be about €200 billion up to 2020 . The Commission has also stressed that, under a business as usual scenario, almost half of these investments are at risk of not being delivered in time or at all, leaving a gap of about €100 billion.
The main identified obstacles are problems related to permit granting, regulatory issues and financing; and those cannot be fully overcome by the existing measures.
In this context, the European Commission has proposed an Energy Infrastructure package, which we introduce in this presentation.
Jean-Michel Glachant launches the Future Power Grid Managers Programme. Opening Seminar: setting the scene & projects launching, 3 October 2013, Florence
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Más información en http://www.tecnalia.com
The value of creating a flexible ecosystemHenri Relyveld
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Creating a flexible energy ecosystem is the challenge for the whole energy market. Flexibility in energy demand and energy supply is a vital aspect for a successful energy transition. Especially because peaks in demand and supply are likely to grow substantially (electric transport, solar rooftops) in the near future.
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Over 300 people attended this exciting webinar which provided background information on various call topics and on support available for both UK and European organisations in how to apply for funding and search for partners. This webinar covered areas 2, 3, and 4. KTN hosted this event on behalf of Innovate UK and was delivered by Helen Fairclough, EU Energy Focus, UK National Contact Point for Horizon 2020 Energy, Abishek Ramesh, UK National Contact Point for Horizon 2020 Advanced Manufacturing and Materials, and Jane Watkins, Knowledge Transfer Manager- European Programmes, KTN.
A big thank you to the Speakers, Organisers and everyone who attended the event!
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Conferencia de Ignacio Martí, Director Técnico de ORE CATAPULT y Chairman del...Leire Agüero Suárez
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TECNALIA #Perspectives2016 “Industria y Tecnología: Las oportunidades de la energía en el mar” es el título del evento que contó con la participación de Ignacio Martí, Director Técnico de ORE CATAPULT y Chairman del capítulo de Energía Eólica de la Agencia Internacional de la Energía.
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Grids are already developing offshore, and this development will continue even though at what pace and how they will develop is still uncertain. Indeed, there are different possible configurations for a future offshore grid: it can be a simple multiplication of standalone lines that provide each a single service (either connection of generation, or connection between transmission grids); or it can be a more integrated infrastructure like an offshore meshed grid that combines and interconnects dozens of offshore lines and generation units (hereafter combined solution).
The HVDC grid projects seem to have what it takes to become a so-called ‘Project of Common Interest’. This implies that they can get a preferential regulatory treatment thanks to the brand new EU Regulation for Energy Infrastructure that has been adopted last year to speed up projects that are of strategic importance for Europe. In this presentation I give an overview of the new set of regulatory tools that the Energy Infrastructure Package provides, their status of implementation, and what is next.
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The European Commission estimates that about €200 billion needs to be invested in electricity and gas infrastructure in order to achieve the 2020 energy and climate objectives. There is a risk that almost half of this expected investment will be too late or not at all. The Energy Infrastructure Package therefore establishes a process to identify Projects of Common Interest whose development will be accelerated. Projects of Common Interest will be selected based on a Cost Benefit Analysis method.
In a recent THINK report for the European Commission (DG Energy), we conclude that the Cost Benefit Analysis method that has been proposed by the European Network of Transmission System Operators for Electricity (ENTSO-E) at the end of 2012 is an important step in the right direction, but it is still possible to improve.
1. http://think.eui.eu
Offshore transmission investments
How to regulate these investments? Who should act?
North Seas Countries’ Offshore Grid Initiative (NSCOGI)
Copenhagen, 18-19 April 2012
Leonardo Meeus
(Florence School of Regulation, European University Institute)
THINK (http://think.eui.eu)
http://think.eui.eu
2. Background
THINK Report #5
“Offshore Grids: Towards a least regret EU policy“
(published in January 2012)
Three types of investment
Shore to shore
Farm to shore
Combined solutions
How to regulate these investments?
Who should act?
http://think.eui.eu
2
3. How to regulate offshore transmission investments?
Shore to shore: projects overview
Four projects, four regulatory frames:
Estlink
350 MW
VSC HVDC
NorNed
700 MW
CSC HVDC
BritNed
1000 MW
CSC HVDC
Nemo
1000 MW
CSC HVDC
3
http://think.eui.eu
4. How to regulate offshore transmission investments?
Shore to shore: TSOs propose, NRAs approve
Planning principle
• Important due to economies of scale and network externalities
• Assessment: mainly national planning, while interdependencies across borders
Competition principle
• Important to the extent that there are cost and technology uncertainties
• Assessment: most TSOs can only be contested with merchant projects, while
opportune to also allow third parties to propose projects for a regulated return
Beneficiaries pay principle
• Important to signal costs of demand for transmission
• Assessment: mainly national tariffs, while these projects create winners and losers
beyond national borders
In conclusion: the current regulatory framework for transmission investments with a
cross-border impact is economically unsound, but this problem also exists onshore
http://think.eui.eu
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5. How to regulate offshore transmission investments?
Farm to shore: projects overview
400
HVAC
350 HVDC VSC
300 MVAC
250
Distance (km)
200
150
100
50
0
1990 1995 2000 2005 2010 2015 2020
-50
Year Commissioned
http://think.eui.eu
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6. How to regulate offshore transmission investments?
Farm to shore: strong economic features
In comparison with the connection of a typical generator onshore:
• Stronger network externalities, and economies of scale
• Higher cost and technology uncertainties
Borwin project: Tennet, ABB
http://think.eui.eu
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7. How to regulate offshore transmission investments?
Farm to shore: regulatory experimentation ongoing
Planning principle
• First-come-first-serve does not capture offshore economies of scale and network
externalities
• German model for offshore is a good example of advanced connection planning
Competition principle
• Only allowing TSOs to develop connections does not sufficiently incentivize innovation,
while there are high cost and technology uncertainties
• UK model for offshore is a good example of how competitive tendering can be used
Beneficiaries pay principle
• Generators that do not pay for their connection, do not have an incentive to proactively
participate in connection planning
• Swedish model for offshore is a good example of making generators pay for their
connection
In conclusion: the current regulatory framework to connect generators needs to be
adapted to the stronger economic features of farm to shore investments , which is ongoing
http://think.eui.eu
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8. Who should act?
Standalone offshore lines
There is no need for a specific EU intervention for standalone offshore lines
• Shore to shore the problem is the same as onshore
• Farm to shore the problem is local
Nonetheless,
• The EU institutions can support the ongoing learning process by comparing the
performance of novel regulatory frameworks (e.g. Germany, UK and Sweden)
• It is also important to continue the implementation of the third package
• With community-wide transmission planning that already includes shore to
shore investments (TYNDP)
• But, this still needs to be backed-up by an EU level facilitation of the ex-ante
investment cost and benefit allocation
• (Infrastructure package first step in this direction)
http://think.eui.eu
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9. How to regulate offshore transmission investments?
Combined solutions: projects overview
Kriegers Flak COBRA cable Moray Firth HVDC Hub
Denmark, Germany, Sweden Denmark, Netherlands United Kingdom
150 M€ EU grant 86.5 M€ EU grant 74 M€ EU grant
The economic case of these projects is still uncertain, but regulation needs to
be proactive to enable this possibly important path to 2050
http://think.eui.eu
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10. Who should act?
Combined solution: analytical approach
The difficulties of these investments under the current Type of EU
regulatory framework are tremendous involvement
• Difficulties are the actual problems faced by these 3 “first of a Soft Strong
kind” projects (Kriegers Flak, Cobra Cable, Moray Firth)
• Remedies
Possible role of the EU:
• Soft EU involvement: guiding and supporting the national and/or
regional policy implementation of the remedies;
• Strong EU involvement: where a regional solution is not viable, a
stronger involvement is already recommended today
http://think.eui.eu
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11. Who should act?
Combined solution: difficulties & remedies
National frames for transmission investments that are not Type of EU
aligned involvement
• Kriegers Flak: TSOs in Denmark and Germany responsible for the Soft Strong
connection, but not in Sweden
• Cobra Cable: TSOs in Denmark and the Netherlands could connect √
German offshore wind, but they are not responsible for it and the
German TSO is obliged to connect
Indicative guidelines that encourage member states to follow the
guiding principles of an economically sound regulatory frame for
transmission investments (i.e. planning principle, competition
principle, and beneficiaries pay principle)
http://think.eui.eu
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12. Who should act?
Combined solution: difficulties & remedies
National renewable support schemes that are not aligned Type of EU
involvement
• Kriegers Flak: not necessarily an issue, because in the current
project design each country would continue to import the offshore Soft Strong
wind produced in its waters
• Cobra case: German offshore wind could feed into the Danish or √
Dutch system, but the Germany renewable energy support is solely
for energy delivered into the German system √
Promote the use of the renewable support scheme flexibility
mechanisms for offshore wind farms (i.e. joint project and joint
support scheme mechanisms) to reduce the distortions coming from
the national support schemes
http://think.eui.eu
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13. Who should act?
Combined solution: difficulties & remedies
Multi-stakeholder setting with winners and losers Type of EU
involvement
• Kriegers Flak: 3 TSOs, 3 NRAs, 3 wind developers
Soft Strong
• Cobra: at least 2 TSOs, 2 NRAs, and potentially several wind
developers.
• Moray Firth: only 1 TSO and NRA, but potentially several wind
√
developers
√
Organize the approval of transmission investment project packages
(i.e. portfolio approach instead of cost benefit allocation √ √
arrangements for individual projects), complemented with a new
mechanism to implement the beneficiaries pay principle for
combined solutions
http://think.eui.eu
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14. Who should act?
Combined solution: difficulties & remedies
Grid technology development constrained by typical R&D Type of EU
market failures involvement
• The technology to use would typically be HVDC VSC, which is Soft Strong
relatively new technology that has already been used for
standalone lines, but not yet in a combined solution √
• Combined solution systems require more advanced hardware and
software that still need to be developed and tested √
Include an offshore grid technology roadmap in the SET-Plan, within √ √
an industrial initiative driven by HVDC manufacturers, focused on
accelerating offshore grid technology development required for large
scale combined solutions (larger than in projects like Kriegers Flak, √
Cobra, and Moray Firth)
http://think.eui.eu
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15. Who should act?
Combined solution: difficulties & remedies
Sequential decision process in a context of uncertainty and Type of EU
irreversibility involvement
• Dimensions of offshore platforms Soft Strong
• HVDC systems that operate at a different voltage
√
• Retrofitting a converter station to make it multi-terminal
Incompatibility of for components coming from different
•
√
manufacturers
Develop improved transmission planning methods and apply them to √ √
elaborate a Twenty or Thirty Year Network Development Plan that
considers combined solutions
√
√
http://think.eui.eu
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