The Ocean Grid project
The overall objective of the Ocean Grid project was to enable the development of profitable offshore energy infrastructure and reduce risks and costs through knowledge-based analyses. The specific objective of SP1.3 was to contribute to the development of a Norwegian regulatory model for offshore wind and grid development with hybrid offshore wind projects, for the period 2030 and beyond, and so to reach the ambition level set by the Norwegian government of awarding areas equivalent to 30GW of offshore wind production capacity by 2040. The analysis undertaken in SP1.3 also took into account ongoing offshore wind policy developments around the North Sea basin, including in EU countries and Great Britain.
The strategic role of hybrid offshore wind projects
Hybrid offshore wind projects (also called “hybrid projects” or simply “hybrids”) refer to a project set-up that combines electricity production from offshore wind farms with electricity trade through interconnector(s) between bidding zones located in several countries. A hybrid project therefore combines energy generation and interconnection functions, enabling the use of the transmission asset in a dual way by connecting two or more markets. Research in the Ocean Grid project shows that hybrids can facilitate cross-border trade, create more business opportunities, save costs for society and use sea areas more efficiently than solely radial projects, and therefore benefit the environment. Hybrid projects can also be seen as intermediary steps towards more meshed offshore grids, working in combination with energy islands and energy hubs.
Project outcomes
The work in SP1.3 has focused on the assessment of the currently applicable regulatory and legal framework for hybrids, the identification of regulatory barriers, and the development of recommendations for improved regulatory conditions.
The work package SP1.3 has delivered two comprehensive reports that serve as the basis for a synthesis report and the regulatory roadmap (third report):
- The first report (numbered Deliverable D1.6) discusses the legal definition, jurisdiction over the different assets and legal barriers to the development of hybrid projects. It looks at the applicable legislation and possible legal barriers to the deployment of hybrid offshore wind projects between Norway and Europe, meaning both European Union (EU) countries and Great Britain (GB).
Reference and link: Catherine Banet and Silke Goldberg, Mapping of regulatory barriers to hybrid offshore wind projects between Norway and Europe, Green Platform Ocean Grid, Deliverable D1.6, February 2024. Available at: Mapping of regulatory barriers to hybrid offshore wind projects between Norway and Europe – oceangridproject.no
- The second report (numbered Milestone M1.2) focuses on Regulatory Models and Market Conditions. It deals with market design rules and cost-benefit allocation models to enable offshore wind and grid development with hybrids between Norway and Europe. It discusses the applicability of the regulatory models under both a project-specific perspective (where collaboration between stakeholders is assessed at the level of a specific project) and a cross-border perspective (where collaboration between involved states is assessed at the sea basin level). The report also takes a holistic approach, looking at both generation and grid solutions, and therefore uses the term “hybrid offshore wind project” to refer to all assets under the project, taking due account of the legal constraints imposed by the unbundling rules.
Reference and link: Catherine Banet et. al., Market design alternatives and cost and revenue sharing models for hybrid offshore wind projects between Norway and Europe, Green Platform Ocean Grid, Milestone M.1.2, July 2024. Available at: Market design alternatives and cost and revenue sharing models for hybrid offshore wind projects between Norway and Europe – oceangridproject.no
The third and final report (Deliverable D1.7) is a synthesis report of the work conducted in SP1.3. It summarises and consolidates the findings from the first two reports. It lays down the background assessment for an associated regulatory roadmap for the deployment of the first hybrid offshore wind projects between Norway and Europe, including Great Britain.
Reference and link: Regulatory roadmap for developing hybrid offshore wind projects between Norway and Europe, Green Platform Ocean Grid, Sub-Project 1.3 on Regulatory Barriers, Synthesis Report D1.7, December 2024. Regulatory Roadmap for developing hybrid offshore wind projects between Norway and Europe – oceangridproject.no
The work performed in the work package SP1.3 provides a holistic approach to the question of the regulation of hybrids. It analyses how to enable hybrids from both a project-specific perspective and a cross-border perspective, focusing on the North Sea basin. The report also has a multi-actor approach, looking at the position of the different key actors involved in hybrid projects, and not only the position of one single actor. It is indeed instrumental to take into account the interests of the different actors (transmission system operators/TSOs, project developers, society/consumers, hosting and non-hosting states, etc.) to enable a balanced remuneration model for hybrids.
Funding acknowledgment
The Ocean Grid is a Green Platform project, financed in part by the Research Council of Norway.
UiO project participants
The University of Oslo, Faculty of Law, was a research partner in the project, and worked in close collaboration with both industry and other research partners. Project participants at the University of Oslo were: Prof. Catherine Banet (main coordinator and author), Ass. Prof. Silke Goldberg, as well as three master students financed by the projects.