Regulating Offshore Electricity Infrastructure in the North Sea

Synopsis

Increasing renewable electricity generation is a priority for the states surrounding the North Sea. These states rely on offshore wind energy to provide a large amount of renewable energy. The North Sea is a vast space, with good conditions for offshore wind: it is relatively shallow and the wind blows harder, more often and more predictably than onshore. Recent reports predict a cumulative installed  capacity of 40-59 gigawatts (GW) of offshore wind capacity by 2030 and 86-127 GW by 2040.

Over the last few decades, the offshore wind farms (OWFs) constructed in the North Sea have increased in size and are located further from shore. The cost of the grid connection rises significantly when the distance to shore increases. This highlights the need for strategic investments in electricity transmission infrastructure to bring the electricity generated offshore to the onshore grid in a reliable and cost-effective way. This has motivated some North Sea coastal states to adopt a clustered approach for the connection of OWFs rather than a separate cable connection for each OWF.

At the same time, the EU aims to increase interconnection between the electricity markets of the Member States. The availability of interconnection capacity enables electricity to be traded and increases the reliability of the electricity system. However, this is only possible if physical links between the electricity systems of different Member States, named 'interconnectors', are constructed. Most of the 82 interconnectors between EU states are located on land, but in some cases they are also located offshore, for instance to link electricity markets across the North Sea. Following the EU's aim to increase interconnection, more subsea interconnections will also be built within the coming decades.

As a result of these two factors, more cables will have to be constructed in the North Sea over the coming years. It is possible to combine different functions - interconnection and transmission of offshore-generated electricity - in so-called 'hybrid assets', which are cable connections that have a dual function. Eventually hybrid assets could be combined in a meshed offshore grid (MOG). A MOG is defined as al/ the electricity transmission assets that connect offshore generation from renewable energy sources to onshore connection points in two or more national electricity systems. In order to develop offshore electricity infrastructure more cost-effectively in the long term, North Sea coastal states are exploring the possibility of working together on offshore electricity infrastructure development and coordinating their regulatory efforts. The EU has named the 'North Seas offshore grid' as a priority corridor in the trans-European energy network.

Description
Ceciel NIEUWENHOUT. Regulating offshore electricity infrastructure in the North Sea : towards a new legal framework. Groningen : University of Groningen, 2020, 286 p.