North Sea Wind Power Hub and the role of the interconnections

MultiDC event at DTU, | 18 – 19th September 2019

Fitim Kryezi (Energinet) The energy transition and offshore wind The Paris agreement implies a radical change in the electricity generation mix for North Sea countries

GW Share of energy carriers in final energy consumption 250 200 Electricity 150

100

50 0 2050 scenarios 2030 2020 2030 2040 2050

Mitigate climate change A swift and massive Including an estimated And requiring an impact by limiting global change in the energy 180 GW of offshore wind accelerated and steady warming to well below 2 °C system is required and 50-80 GW of deployment based on and pursue below 1.5 °C interconnectors(1) cross border spatial Full decarbonisation of planning energy sector

1 Translate COP21: 2045 outlook and implications for offshore wind in the North Seas (Ecofys 2017) MultiDC event 19-09-2019 2 WHY TSO INVOLVEMENT?

“We have a public responsibility to ensure a high level of security of supply at lowest possible socio-economic cost in a future scenario with more renewables.”

MultiDC event 19-09-2019 3 Grand vision and the North Sea Wind Power Hub Developing 180 GW of in the North Sea, to be supplied to European markets, using a modular “hub and spoke” concept

• Offshore hubs in the North Sea could each connect up to 10-15 GW wind power and distribute generated power to European markets

through a network of cables (spokes) and/or pipelines (H2 production) • From the hub, generated power will be transmitted to markets around the North Sea • The network of transmission cables will also function as interconnectors, directly connecting European energy markets

North Sea Wind Power Hub Consortium TenneT , TenneT , Energinet, Gasunie and Port of Rotterdam joined forces to develop a large scale European energy system for offshore wind in the North Sea.

MultiDC event 19-05-2019 4 International coordinated roll-out

National Incremental Roll-Out International Coordinated Roll- Hub and Spoke system (NIRO/BAU) Out (ICRO)

A coordinated roll-out of North Sea Wind Power Hubs facilitates an accelerated deployment of large scale offshore wind in the North Sea required to support realizing the Paris Agreements target in time, with minimum environmental impact and at the lowest cost for society, while maintaining security of supply

MultiDC event 19-09-2019 5 Our two leg approach

Leg 1 Leg 2 North Sea International Towards the First Modular Coordinated Roll Out Hub & Spoke project

Planning regional integration of Initial feasibility studies to large scale wind across the north assess a first and concrete hub sea with key stakeholders. and spoke concept combining grid integration of wind power and interconnectors between countries.

MultiDC event 19-09-2019 6 Consortium has broadened its investigations beyond DB Several locations have been evaluated in addition to the initial location to evaluate the main techno-economic driver dependence on location.

Broadened investigative space: • Increased number of test locations to four • Technical, Economical, baseline Environmental and Market and Regulatory analyses • Alternative design options include sand filled island, caissons, platform and floating structure • Significant attention to onshore grid integration and future security of supply issues, including the possible role of P2X in this respect

Disclaimer: These test locations do not indicate any preferred location selection

MultiDC event 19-09-2019 7 The NSWPH offers a unique concept It provides a step-by-step approach and adaptability to balance scale, development times and environmental compatibility

Combining offshore wind International coordination will result in transmission and interconnection optimal onshore connection points infrastructure

Reducing cost through P2X provides sector-coupling increased asset utilisation flexibility

MultiDC event 19-09-2019 8 Main benefits … The Hub and Spoke concept brings forward numerous benefits for society.

Increases the security of realising the Paris Agreement in a timely and cost effective manner

Each 12 GW hub project could provides 16 million households with clean energy and reduces CO2 by an additional 2% for entire Europe compared to a radial scenario

Power2X provides flexibility to the energy system, balancing supply and demand to maintain security of supply

30% cumulative cost reduction on the electrical infrastructure for an international coordinated € roll-out compared to a national radial roll-out.

MultiDC event 19-09-2019 9 In summary Urgent action is essential to timely shape the boundary conditions that are required to meet the long term climate goals

• A significant increase in the deployment rate of offshore wind is needed to meet the Paris Agreement climate targets in time

• Multi-use of the North Sea is required to accommodate the required offshore wind deployment

• Internationally coordinated spatial planning (how much, where and when) is necessary to o Secure cost reduction from benefits of scale o Minimise environmental impact o Realise a robust and steady roll-out of offshore wind o Provide market certainty for supply chain ramp up

• Onshore grid integration and flexibility options need to be developed in parallel to ensure security of supply for all consumers

MultiDC event 19-09-2019 10 Thank you!

Subscribe to our Newsletter at www.northseawindpowerhub.eu External validation of cost reduction Hub & Spoke concept Roland Berger ‘North Seas Offshore Energy Clusters Study’ for the EC

-1.5 CAPEX OPEX

TYNDP 2018 project 335 MultiDC event 19-09-2019 12 The North Sea is intensely used

• 430,000 푘푚2 of Southern North Sea • 220,000 푘푚2 with <55m water depth • 180 GW = ~ 20,000 – 30,000 푘푚2 ECO EXISTING COMPLEX PIPES SYSTEM WIND FIELDS SHIPPING AND CABLES LANES

• Known appointed OWF areas ~ 47 to 84 GW capacity

• Exclusionary approach HELICOPTER MILITARY OIL AND GAS FLIGHT SAFTEY AREAS PLATFORMS leaves small, scattered ZONES space for OWFs

• Remaining space is ~14,000 km2 (or 15-25 GW)

MultiDC event 19-09-2019 13 Consortium has intensified stakeholder engagement

Discuss the vision with key stakeholders • Emphasize the requirement for cross-border cooperation and co-utilization • Jointly work towards timely achieving the COP21 goals (avoiding roll-out delays)

Feed the spatial planning debate • Active outreach to important stakeholders. Transparent and open discussions with Governments, Industry and NGO’s. Clearly stating what the consortium is doing. • Seeking joint understanding to work towards urgent regional spatial planning. Provide insight into spatial planning debate: Techno-Economic / security of supply

Consult influential wind industry players • To seek input from Industry on issues like: (i) Market arrangements, (ii) Interconnector accessibility and (iii) Key success factors. • Support for joint publishing Industry Report

NSWPH 30-04-2019 14