The Ideal market design for offshore grids - a Nordic TSO perspective
The exploitation of Europe’s vast offshore energy resources is set to pave the way for Europe to become the world’s first climate neutral continent by 2050. Massive offshore deployment will involve an offshore grid, connecting e.g. wind farms to hubs that are connected to several countries. One of many questions to be answered is what market design is ideal for such offshore hubs.
In cooperation with Nordic TSO colleagues, we argue that new offshore grids should be built on the principles of offshore bidding zones which can be both connected to each other and to more than one onshore bidding zone. There is, in terms of market functioning, no difference between onshore and offshore bidding zones.