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Powering Europe with North Sea offshore wind: The impact of hydrogen investments on grid infrastructure and power prices

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  • Durakovic, Goran
  • del Granado, Pedro Crespo
  • Tomasgard, Asgeir

Abstract

Hydrogen will be a central cross-sectoral energy carrier in the decarbonization of the European energy system. This paper investigates how a large-scale deployment of green hydrogen production affects the investments in transmission and generation towards 2060, analyzes the North Sea area with the main offshore wind projects, and assesses the development of an offshore energy hub. Results indicate that the hydrogen deployment has a tremendous impact on the grid development in Europe and in the North Sea. Findings indicate that total power generation capacity increases around 50%. The offshore energy hub acts mainly as a power transmission asset, leads to a reduction in total generation capacity, and is central to unlock the offshore wind potential in the North Sea. The effect of hydrogen deployment on power prices is multifaceted. In regions where power prices have typically been lower than elsewhere in Europe, it is observed that hydrogen increases the power price considerably. However, as hydrogen flexibility relieves stress in high-demand periods for the grid, power prices decrease in average for some countries. This suggests that while the deployment of green hydrogen will lead to a significant increase in power demand, power prices will not necessarily experience a large increase.

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  • Durakovic, Goran & del Granado, Pedro Crespo & Tomasgard, Asgeir, 2023. "Powering Europe with North Sea offshore wind: The impact of hydrogen investments on grid infrastructure and power prices," Energy, Elsevier, vol. 263(PA).
    • Handle: RePEc:eee:energy:v:263:y:2023:i:pa:s0360544222025403
    DOI: 10.1016/j.energy.2022.125654
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    Cited by:

    1. Goran Durakovic & Hongyu Zhang & Brage Rugstad Knudsen & Asgeir Tomasgard & Pedro Crespo del Granado, 2023. "Decarbonizing the European energy system in the absence of Russian gas: Hydrogen uptake and carbon capture developments in the power, heat and industry sectors," Papers 2308.08953, arXiv.org.
    2. Diego Bairrão & João Soares & José Almeida & John F. Franco & Zita Vale, 2023. "Green Hydrogen and Energy Transition: Current State and Prospects in Portugal," Energies, MDPI, vol. 16(1), pages 1-23, January.
    3. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    4. Martinez, A. & Murphy, L. & Iglesias, G., 2023. "Evolution of offshore wind resources in Northern Europe under climate change," Energy, Elsevier, vol. 269(C).
    5. Kountouris, Ioannis & Langer, Lissy & Bramstoft, Rasmus & Münster, Marie & Keles, Dogan, 2023. "Power-to-X in energy hubs: A Danish case study of renewable fuel production," Energy Policy, Elsevier, vol. 175(C).
    6. Jerez Monsalves, Juan & Bergaentzlé, Claire & Keles, Dogan, 2023. "Impacts of flexible-cooling and waste-heat recovery from data centres on energy systems: A Danish case study," Energy, Elsevier, vol. 281(C).
    7. Oliveira Santos, Victor & Costa Rocha, Paulo Alexandre & Scott, John & Van Griensven Thé, Jesse & Gharabaghi, Bahram, 2023. "Spatiotemporal analysis of bidimensional wind speed forecasting: Development and thorough assessment of LSTM and ensemble graph neural networks on the Dutch database," Energy, Elsevier, vol. 278(PA).
    8. Durakovic, Goran & del Granado, Pedro Crespo & Tomasgard, Asgeir, 2023. "Are green and blue hydrogen competitive or complementary? Insights from a decarbonized European power system analysis," Energy, Elsevier, vol. 282(C).

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