Posters
Come meet the poster presenters to ask them questions and discuss their work
We would like to invite you to come and see the posters at our upcoming conference. The posters will showcase a diverse range of research topics, and will give delegates an opportunity to engage with the authors and learn more about their work. Whether you are a seasoned researcher or simply curious about the latest developments in your field, we believe that the posters will offer something of interest to everyone. So please join us at the conference and take advantage of this opportunity to learn and engage with your peers in the academic community. We look forward to seeing you there!
PO150: System integration for improved offshore wind economics
Lennard Sijtsma, Managing Consultant, Guidehouse
Abstract
Offshore wind has become a commodity on which national governments are hoping to capitalise. Auction results across the world have raised eyebrows and raised questions on the long-term viability of business cases. In parallel, some developers have halted developments of projects or are renegotiating or even terminating offtake agreements of offshore wind projects. In addition, electricity market forecasts show that with increased penetration of renewables, the capture rates of renewable projects will decrease, as correlation between market prices and renewable production increases. Governments are increasingly focusing on non-price criteria in offshore wind tenders. One of the criteria applied in the two most recent tender rounds in the Netherlands is the integration of the wind farm in the energy system. This incentivises developers to stimulate the development of (flexible) additional electricity demand that contributes to mitigating grid congestion. In addition, investments in electrification of industry, demand response, and other forms of energy system flexibility can help offshore wind farm developers to mitigate exposure to decreasing capture rates. National governments are challenged with not only decarbonisation of the energy supply, but also decarbonisation of energy demand. Energy intensive industrial processes are major contributors to greenhouse gas emissions. Direct electrification (replacing fossil fuel processes with electric processes) or indirect electrification (replacing fossil fuels with an alternative fuel generated with electricity, e.g., electrolysis) are essential for decarbonisation of industry. We've explored the dynamics which determine offshore wind project feasibility from an economic perspective, focussing primarily on long-term revenue security and the role that system integration plays. Developers can (co-)invest in electricity demand assets to manage the risk of price uncertainties internally. However, developers face unprofitable gaps and unfavourable grid tariffs for storage and conversion technologies. Governments can facilitate the market by coordinating renewable supply and electrification roadmaps and taking down barriers.
