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Optimal interconnection and renewable targets for north-west Europe


  • Lynch, Muireann Á.
  • Tol, Richard S.J.
  • O'Malley, Mark J.


We present a mixed-integer, linear programming model for determining optimal interconnection for a given level of renewable generation using a cost minimisation approach. Optimal interconnection and capacity investment decisions are determined under various targets for renewable penetration. The model is applied to a test system for eight regions in Northern Europe. It is found that considerations on the supply side dominate demand side considerations when determining optimal interconnection investment: interconnection is found to decrease generation capacity investment and total costs only when there is a target for renewable generation. Higher wind integration costs see a concentration of wind in high-wind regions with interconnection to other regions.

Suggested Citation

  • Lynch, Muireann Á. & Tol, Richard S.J. & O'Malley, Mark J., 2012. "Optimal interconnection and renewable targets for north-west Europe," Energy Policy, Elsevier, vol. 51(C), pages 605-617.
  • Handle: RePEc:eee:enepol:v:51:y:2012:i:c:p:605-617 DOI: 10.1016/j.enpol.2012.09.002

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    References listed on IDEAS

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    Cited by:

    1. Deane, J.P. & Driscoll, Á. & Gallachóir, B.P Ó, 2015. "Quantifying the impacts of national renewable electricity ambitions using a North–West European electricity market model," Renewable Energy, Elsevier, vol. 80(C), pages 604-609.
    2. English, J. & Niet, T. & Lyseng, B. & Palmer-Wilson, K. & Keller, V. & Moazzen, I. & Pitt, L. & Wild, P. & Rowe, A., 2017. "Impact of electrical intertie capacity on carbon policy effectiveness," Energy Policy, Elsevier, vol. 101(C), pages 571-581.
    3. Curtis, John & Devitt, Niamh & di Cosmo, Valeria & Farrell, Niall & FitzGerald, John & Hyland, Marie & Lynch, Muireann & Lyons, Sean & McCoy, Daire & Malaguzzi Valeri, Laura & Walsh, Darragh, 2014. "Irish Energy Policy: An Analysis of Current Issues," Research Series, Economic and Social Research Institute (ESRI), number rs37 edited by FitzGerald, John & Malaguzzi Valeri, Laura.
    4. Jan Horst Keppler, Sebastien Phan, and Yannick Le Pen, 2016. "The Impacts of Variable Renewable Production and Market Coupling on the Convergence of French and German Electricity Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    5. Nuno Carvalho Figueiredo & Patrícia Pereira da Silva & Pedro Cerqueira, 2014. "The Renewables Influence on Market Splitting: the Iberian Spot Electricity Market," GEMF Working Papers 2014-14, GEMF, Faculty of Economics, University of Coimbra.
    6. repec:dau:papers:123456789/14119 is not listed on IDEAS
    7. Sébastien Phan & Fabien Roques, 2015. "Is the depressive effect of renewables on power prices contagious? A cross border econometric analysis," Cambridge Working Papers in Economics 1527, Faculty of Economics, University of Cambridge.
    8. Muireann Á. Lynch & Richard Tol & Mark J. O’Malley, 2014. "Minimising costs and variability of electricity generation by means of optimal electricity interconnection utilisation," Working Paper Series 6814, Department of Economics, University of Sussex.
    9. Figueiredo, Nuno Carvalho & Silva, Patrícia Pereira da & Cerqueira, Pedro A., 2015. "Evaluating the market splitting determinants: evidence from the Iberian spot electricity prices," Energy Policy, Elsevier, vol. 85(C), pages 218-234.
    10. Dominković, D.F. & Bačeković, I. & Ćosić, B. & Krajačić, G. & Pukšec, T. & Duić, N. & Markovska, N., 2016. "Zero carbon energy system of South East Europe in 2050," Applied Energy, Elsevier, vol. 184(C), pages 1517-1528.
    11. Jan Horst Keppler & Sébastien Phan & Yannick Le Pen & Charlotte Boureau, 2017. "The Impact of Intermittent Renewable Production and Market Coupling on the Convergence of French and German Electricity Prices," Working Papers hal-01599700, HAL.
    12. Pineda, Salvador & Morales, Juan M. & Boomsma, Trine K., 2016. "Impact of forecast errors on expansion planning of power systems with a renewables target," European Journal of Operational Research, Elsevier, vol. 248(3), pages 1113-1122.
    13. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S. & Georgiadis, Michael C. & Papaioannou, George & Dikaiakos, Christos, 2016. "A mid-term, market-based power systems planning model," Applied Energy, Elsevier, vol. 179(C), pages 17-35.
    14. Brancucci Martínez-Anido, C. & Vandenbergh, M. & de Vries, L. & Alecu, C. & Purvins, A. & Fulli, G. & Huld, T., 2013. "Medium-term demand for European cross-border electricity transmission capacity," Energy Policy, Elsevier, vol. 61(C), pages 207-222.
    15. Figueiredo, Nuno Carvalho & Silva, Patrícia Pereira da & Cerqueira, Pedro A., 2016. "It is windy in Denmark: Does market integration suffer?," Energy, Elsevier, vol. 115(P2), pages 1385-1399.


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