Market impact of an offshore grid - a case study

The combination of offshore wind generation with international transmission cables is a highly discussed topic in Europe, especially for the North Sea and the Baltic Sea. The offshore wind park location Kriegers Flak in the Baltic Sea could combine offshore wind generation in the Swedish, German and Danish zones, and several design options with regard to cabling are under discussion. Choosing a certain option has a strong impact on congestion rents between power markets as well as on the income of the offshore wind park operators. This paper includes the planned Kriegers Flak offshore node in the WILMAR model, which is an optimization model reflecting the European power markets. That way, the impact of different suggested topologies on the day-ahead power markets in the different countries can be assessed.