Offshore wind turbines in a sunset outside of the UK

AFRY supports the North Sea Wind Power Hub on Market Setup Options for Hybrid Projects

Written by Asimina Karakyriakou
16/03/2021

The North Sea Wind Power Hub (NSWPH) consortium has joined forces to develop concepts and solutions to support large scale rollout and integration of North Sea offshore wind at the lowest possible environmental impact and cost.

Currently, the approach to plan, design and operate offshore grid infrastructure is predominantly nationally focused. But this is lacking a total system perspective which allows for cost-efficient development and operation of offshore infrastructure overall. A new approach to offshore wind connection and grid integration is, therefore, required to support the scale of the offshore wind roll-out required to meet the Paris Agreement climate targets.

The NSWPH programme sees it as their responsibility to structure and inform the discussion amongst policymakers on the main topics. One of the primary discussion topics is the market setup for generation linked to multi-purpose or hybrid transmission infrastructure – that is, transmission which provides both for connection of offshore windfarms to onshore systems and for market-to-market flows. The discussion centres on defining how offshore windfarms connected to such transmission assets are allocated to specific bidding zones and how cross-zonal capacity between these bidding zones is allocated. To inform these discussions, the NSWPH consortium commissioned a study by AFRY Management Consulting to provide insights into the effects of different market setups, focusing on the potential impact of key economic indicators such as electricity price dynamics and income distribution for relevant stakeholders.

Offshore wind turbines in a sunset outside of the UK

View the full report

The AFRY report serves as background paper to the ‘Impact on Efficiency, Price Formation and Revenue Distribution Analysis’ presented in the NSWPH discussion paper #2 on market setup.

Get in touch with our experts

Simon Bradbury

Senior Principal, AFRY Management Consulting

Asimina Karakyriakou

Senior Consultant, AFRY Management Consulting