Offshore wind development has a range of strategic benefits, according to a new study conducted in Greece.
This analysis was prepared by the Hellenic Hydrocarbons and Energy Resources Management (HEREMA) and Exergia. Its results were presented at the Renewable & Storage Forum organized by Energypress.gr.
According to the study, offshore wind projects in Greece are expected to produce power at a rather high cost of EUR 123 per MWh to EUR 160 per MWh.
However, there is a number of parallel benefits that outweigh this drawback and make this technology beneficial.
Stefatos: A new supply chain to boost the economy
Offshore wind farms have a high capacity factor, over 40%, meaning they can function similar to baseload energy production units. Furthermore, they can reduce renewable energy curtailments by four times, the use of natural gas by 30% and the overall operational cost of the electricity system by 50%.
This calculation is based on the goals specified in the National Energy and Climate Plan (NECP), which calls for 3.9 GW of offshore wind by 2035.
It is notable that in order to achieve a similar reduction in curtailment, battery storage would have to reach 14 GW. Therefore, just one third of that capacity in offshore wind is expected to have the same result.
The benefits are also economic in nature. In the day-ahead electricity market, hours with zero or negative prices could be reduced to 323 annually, versus 704 under a scenario with high solar penetration. Price volatility is also reduced.
The country’s power exports are seen at 1.34 TWh annually, compared to 0.4 TWh or 0.76 TWh based on scenarios with no offshore wind.
In total, the added cost for the power system is estimated at EUR 1.84 billion without offshore wind and EUR 850 million with it.
“We can also create an entire supply chain that brings secondary effects to the national economy,” said HEREMA’s CEO Aristofanis Stefatos.
Pilot project selected for EU funding
Earlier this week, the European Commission selected 77 net zero technology projects to receive support worth EUR 3.4 billion from the Innovation Fund.
One of them is AegeanFloat, Terna Energy’s 45 MW floating offshore wind project in the Aegean Sea.
The farm would consist of three floating turbines of 15 MW each, on concrete-based floating platforms.
Terna Energy, owned by Abu Dhabi Future Energy Co. (Masdar), is to de-risk floating offshore technology at pre-commercial scale, collect technical, environmental and economic data that could accelerate permitting, boost the European supply chain, and support Mediterranean energy security and climate-neutrality.