* * *
- PROMOTioN's latest report summarizes the key findings on the design of a legal, regulatory and financing framework for cross-border HVDC offshore connections.
* * *
Countries around the
Tim Meyerjurgens, COO at TenneT, stresses: "The development of a cross-border HVDC grid is one of the most promising opportunities for a sustainable energy future in
PROMOTioN's latest report, "D7.9 Regulatory and financing principles for a meshed HVDC offshore grid", summarizes the key findings on the design of a legal, regulatory and financing framework for cross-border HVDC offshore connections and provides recommendations for policy makers and other stakeholders to take appropriate measures to enable the first hybrid assets to be built.
In the short-term, it is recommended to:
- improve the governance and the regulation of the internal market for (offshore) electricity by including in the Electricity Regulation a definition and substantive provisions on the regulation of a hybrid asset; assets which combine both interconnection and wind farm export functionalities
- provide innovation funding for novel ideas and technologies (e.g. novel energy storage techniques), and fund anticipatory investment which is cost-effective in delivering a meshed offshore grid (e.g. island hubs)
- support early communication between developers, authorities and other key stakeholders about new wind farm projects to enable early identification of meshed offshore grid development needs. Opportunities for wider stakeholder involvement in the decision making process should also be identified
- formalize of the Cross-Border Cost Allocation (CBCA) as a binding contract between the involved parties with a clear specification of non-compliance penalties. CBCA coordination is one of the most important pillars in the economic framework and should be promoted for complementary projects.
Long-term regulatory stability
To provide long-term regulatory stability, PROMOTioN recommends Member-States, third countries and the EU to consider the adoption a
Financing the infrastructure
The long-term legal and regulatory stability is especially important for financing the offshore grid. Investors rely on stable and predictable conditions which includes an assignment of clear roles and responsibilities among the relevant actors. Moreover, equity provision for the required offshore grid investment volumes needs to be facilitated. This can be realized in several ways that are presented in the report. Additionally, it is essential that transmission owners' income is not based on congestion rents, but is regulated with a long-term predictable revenue stream which creates certainty to investors and thus, attracts investments in offshore grid assets.
The published report summarizes the crucial elements for defining a regulatory framework and identifies the conditions necessary to support the financing of a meshed offshore grid. The report can be downloaded here. More detailed information can also be found in other reports on the Legal Framework, Economic Framework and Financial Framework. All public PROMOTioN reports are available at: https://www.promotion-offshore.net/results/deliverables/.
During the WindEurope Offshore 2019 conference and exhibition in
* * *
The recommendations were developed as part of work package 7 of the 'Progress on Offshore Meshed HVDC Transmission Networks' (PROMOTioN) project. The PROMOTioN project aims to tackle technical, regulatory, financial and legal challenges to the implementation of offshore meshed HVDC transmission networks. The consortium consists of 33 partners ranging from all major European HVDC equipment manufacturers, TSOs and academia to industry associations, research groups, test labs and consultants. This project has received funding from the
Learn more at www.dnvgl.com/power-renewables