Assessing the market
GridTech assesses non-technical barriers for transmission expansion, such as permitting and licensing procedures, regulatory disincentives, financing barriers, social acceptance problems, etc. The project also addresses RES-Electricity grid and market integration distortions – e.g. distortions in the integration of wind generation in the day-ahead and intra-day electricity markets – considering intra-TSO, inter-TSO and cross-border transmission congestion problems between different market zones. GridTech identifies 7 target countries and develops different scenarios for the years 2020, 2030, and 2050, addressing the gradual removal of those barriers and distortions. The process includes the active involvement of stakeholders, target groups and market actors, to guarantee critical external review and feedback.
Cost-Benefit Analysis Methodology
The costs and benefits of implementing innovative technologies into the European electricity system are analysed by means of “with-and-without” implementation scenarios. This requires (i) a scanning of new innovative technologies in order to select the most promising ones at a certain point in time in the future (years 2020, 2030 and 2050), and (ii) the set-up of a consistent and tailor-made analysis methodology (costs, benefits, reciprocal weighing).
Application of the Cost-Benefit Analysis Methodology
The cost-benefit analysis methodology is applied both on a European scale (top-down approach) and on the national level for the target countries of the project (bottom-up approach)
In the top-down approach, scenario studies are discussed analysing electricity flows in the meshed pan-European transmission grid and identifying trans-regional transmission bottlenecks for the entire European electricity system in certain points in time. The rational for an analysis at European level is to figure out how complementary electricity generation portfolios in different regions throughout Europe can be exploited in an economically convenient way. A consistent European planning that intends to include the development of transmission highways can only emerge if the EU30+ electricity system is considered as a whole.
In the bottom-up approach, regional case studies are conducted determining cost and benefits of transmission grid expansion fostering large-scale RES-Electricity and storage integration in selected European target countries. The outcomes of these regional scenario studies – each of them emphasising regional strengths in terms of RES-E potentials, bulk storage and available transmission expansion corridors – are also used to validate the modelling results derived in the top-down approach.
The different results of the project are synthesised, resulting in policy recommendations for the key target groups, market actors and stakeholders that have been involved in the process. Special attention is given to several important European policy documents dealing with currently unsolved grid-related issues in the context of RES-Electricity grid and market integration. Brussels-based policy meetings with the Grid group of the European Parliament, ENTSO-E, Eurelectric, RE industry representatives and a board of external experts (Advisory Board) make sure that feedback on the major results and recommendations is collected and incorporated.
The main results and policy recommendations are communicated to the key target groups through bilateral meetings, events and policy papers distributed through relevant established channels.