The role of Norwegian offshore wind in the energy system transition
Dr. Pernille Seljom, IFE, Norway
16â17th november 2023, Turin, Italy, etsap meeting, etsap winter workshop, semi-annual meeting, november 2023, Politecnico di Torino Lingotto, Torino
The role of Norwegian offshore wind in the energy system transition
1. The role of Norwegian offshore wind in the energy
system transition
Kristina Haaskjold & Pernille Seljom
pernille.seljom@ife.no
Renewable energy systems
Institute for Energy Technology (IFE)
Politecnico di
Torino, Italy 17.11.2023
ETSAP winter
WorkShop 2023
2. Motivation
⢠May 2022- Major offshore
wind initiative from the
Norwegian government
⢠Target of 30 GW by 2040
⢠About 140 TWh
⢠âOver the next 20 years, we will go from having two offshore wind turbines in
operation to having around 1 500 turbines,â Priminister Jonas Gahr Støre
⢠âThis initiative achieves three objectives at once: it will lead to more than
enough clean, affordable electricity for existing and new industry across the
country; it will create enormous opportunities for exporting Norwegian
technology; and it will be a major contribution to the green transition in Europe.â
Minister of Trade and Industry Jan Christian Vestre.
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3. Norwegian electricity generation 2022
3
Hydropower
128.7 TWh
CHP
2.4 TWh
Wind power
14.8 TWh
+ +
Import
13.3 TWh
+
End use
125.2 TWh
+
Grid losses
6.7 TWh
Pumped HP
1.6 TWh
+ +
Export
25.8 TWh
Data from: https://www.ssb.no/en/energi-og-industri/statistikker/elektrisitet
6. 6
Norwegian emissions in 2022
In CO2 equivalents:
⢠Oil and gas: 12.2 Mt
⢠Industry: 11.6 Mt
⢠Road transport: 8.7 Mt
⢠Other transport: 7.7 Mt
⢠Agriculture: 4.6 Mt
⢠Waste: 3.6 Mt
⢠Buildings: 0.2 Mt
CO2 equivalents:
- 1 x CO2
- 25 x CH4
- 298 x N20
7. 7
⢠Announced 25.04.2023
⢠Two opened regions 3GW
⢠Sørli Nordsjø 2 in Sørvest F
⢠Utsira Nord in Vestavind F
⢠Planned concessions in 2025
⢠Radial connections
⢠Research questions
⢠Under what conditions are offshore wind a
techno-economic solution?
⢠How will it influence the Norwegian energy
system?
Offshore wind regions
8. Figur: IEA, NETP 2016
Norwegian energy system model
IFE-TIMES-Norway (2018-2055)
⢠Investments & operation to meet demand
future demand for energy services at least cost
⢠Covers entire energy system
⢠Detail representation of end-use and
offshore wind
⢠Regions
⢠5 onshore spot price regions
⢠20 offshore regions
⢠Endogenous electricity trade with European
countries; Denmark, Sweden, Germany,
United Kingdom & Netherland
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Documentation+of+IFE-TIMES-
Norway+v3+(ID+57346)+(003).pdf (unit.no)
9. Offshore wind model input 9
Area AFA Foundation Connection
Nordavind A 49.6 % Floating NO4
Nordavind B 50.2 % Floating NO4
Nordavind C 48.8 % Floating NO4
Nordavind D 48.8 % Floating NO4
Nordvest A 49.5 % Floating NO4
Nordvest B 48.3 % Floating NO3
Nordvest C 47.0 % Floating NO3
Vestavind A 51.3 % Floating NO3
Vestavind B 49.6 % Floating NO3
Vestavind C 48.9 % Floating NO5
Vestavind D 45.8 % Floating NO5
Vestavind E 52.3 % Floating NO2
Vestavind F 50.1 % Floating NO2
Sørvest A 54.5 % Bottom-fixed NO2, DK1, DE, NL, UK
Sørvest B 54.3 % Bottom-fixed NO2, DK1, DE, NL, UK
Sørvest C 55.1 % Bottom-fixed NO2, DK1, DE, NL, UK
Sørvest D 54.5 % Bottom-fixed NO2, DK1, DE, NL, UK
Sørvest E 56.1 % Bottom-fixed NO2, DK1, DE, NL, UK
Sørvest F 55.9 % Bottom-fixed NO2, DK1, DE, NL, UK
Sønnavind A 56.5 % Floating NO2, DK1, DE, NL, UK
11. Case studies and sensitivities
Case studies based primary uncertainties:
⢠European electricity prices
⢠National electricity demand
⢠Investment costs of offshore wind
Sensitivities on expansion of:
⢠Onshore wind power
⢠National transmission grid
⢠All cases and sensitivities assumes a
transition to carbon-neutrality by 2050
⢠2030: CO2 price of 200 EUR/tCO2
⢠2050: CO2 price of 438 EUR/tCO2
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⢠Investment cost, EUR/ GW
0
100
200
300
400
0 2 4 6 8 10 12 14 16 18 20 22 24
Electricity
price
[âŹ/kWh]
Winter - Sweden 2050
Ref Half Low High
0
50
100
150
200
0 2 4 6 8 10 12 14 16 18 20 22 24
Electricity
price
[âŹ/kWh]
Summer - Sweden 2050
Ref Half Low High
12. Results 2040: Investments depends on European prices 12
0
5
10
15
20
25
30
35
HH-1 LH-1 HH-2 LH-2 HL-2 HH-0.8 LH-0.8 HL-0.8 HH-0.5 LH-0.5
Ref High price Low price Half price
Offshore
wind
capacity
[GW]
Nordvest
Nordavind
Vestavind
Sørvest
Sønnavind
HH = High investment cost and High demand, LH = Low investment cost and High demand, HL = High investment cost and
Low demand.
13. Results 2040: Investments depends on technology learning
0
5
10
15
20
25
30
35
HH-1 LH-1 HH-2 LH-2 HL-2 HH-0.8 LH-0.8 HL-0.8 HH-0.5 LH-0.5
Ref High price Low price Half price
Offshore
wind
capacity
[GW]
Nordvest
Nordavind
Vestavind
Sørvest
Sønnavind
HH = High investment cost and High demand, LH = Low investment cost and High demand, HL = High investment cost and
Low demand.
14. Results 2040: Investments depends on demand when high prices
0
5
10
15
20
25
30
35
HH-1 LH-1 HH-2 LH-2 HL-2 HH-0.8 LH-0.8 HL-0.8 HH-0.5 LH-0.5
Ref High price Low price Half price
Offshore
wind
capacity
[GW] Nordvest
Nordavind
Vestavind
Sørvest
Sønnavind
HH = High investment cost and High demand, LH = Low investment cost and High demand, HL = High investment cost and
Low demand.
15. Results 2050
Offshore wind lowers marg. investments in hydropower & PV on buildings
15
47 47 47 47 47 47
11 10 12 11
9 9
9 9 18 17 8 6
77
147
157 169
58
128
0
50
100
150
200
250
300
HH LH HH LH HH LH
Ref price High price Low price
New
renewable
production
[TWh] Offshore wind
PV
Hydro
Onshore wind
HH = High investment cost and High demand, LH = Low investment cost and High demand
16. Results: Offshore wind increase cost-competition of green hydrogen 17
22 24
11 18
31 31
0
20
40
60
80
100
120
140
160
180
0
50
100
150
200
250
300
HH LH HH LH HH LH
Ref price High price Low price
Offshore
wind
production
[TWh]
Electricity
use
[TWh]
H2
CCS
Transport
Industry
DH
Buildings
Wind prod.
HH = High investment cost and High demand, LH = Low investment cost and High demand
17. Acceptance of onshore wind influences offshore investments in north
⢠Figure 10: Difference in offshore wind capacity when limiting investments in new transmission cables (T) and onshore wind
deployment (O), compared to HH and LH case. HH: High investment costs, High demand. LH: Low investment costs, High
demand. T: No new domestic Transmission. O: No new Onshore wind.
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-1
0
1
2
3
4
5
6
HH-T HH-O LH-T LH-O HH-T HH-O LH-T LH-O
High price Low price
Diff.
in
offshore
wind
capacity
[GW]
Nordvest
Nordavind
Vestavind
Sørvest
Sønnavind
18. Key takeaways
⢠Norwegian offshore wind can contribute with significant electricity to the European
power market
⢠Cost-competitiveness of Norwegian offshore wind depends on:
⢠European power market
⢠Technology development/ subsidies
⢠National electricity demand
⢠Expansion of onshore wind
⢠Offshore wind power
⢠marginally lowers investments in building applied PV and hydropower
⢠Increases the profitability of green hydrogen
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19. Further research
⢠Impact of modelling methodology on offshore wind investment strategy
⢠Temporal resolution
⢠Weather dependent production and ancillary markets
⢠Wind profiles selection
⢠Climate change
⢠Combining Norwegian and European analysis with IFE-TIMES-Norway and IFE-TIMES-Europe
⢠Welfare and employment impacts of pathways of offshore wind in combination with
hydrogen and new industries
⢠Please contact me, pernille.seljom@ife.no , for collaboration on these topics.
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