WP7: Costs, benefits, regulations and policy aspects related to North Sea Transnational Grid

The main question in this work package is: which costs and benefits are related to realisation of a North Sea Transnational Grid and how do these compare to the alternative scenarios? A North Sea Transnational Grid can pose particular costs and benefits when realised. For example, the existence of the Transnational Grid can make current electricity systems more flexible, thereby enabling higher penetration rates of wind energy. Realising a transnational grid at sea in a most cost-effective way will probably imply building in different phases, where different parts of the grid are realised when needed. Is there a sufficient level of benefits in this intermediate stage or will the transnational grid only be cost effective when the ring is closed or the connections between the countries have been made? One of the potential costs (benefits) for an individual country is the impact of (increased) interconnection capacity with other countries and its effect, together with the effect of large scale wind power, on electricity market prices. A further aspect is the allocation of benefits and costs to different countries and stakeholders. Cost figures for the different solutions as developed in WP2 will be used as inputs for the cost-benefit analysis in this work package.