Powering Europe - New Report Sets out Vision for the Future European Grid and Markets

BERLIN, November 24, 2010 /PRNewswire/ -- Last week the European Commission said: "The EU pays the price for its outdated and poorly interconnected energy infrastructure". Today the European Wind Energy Association (EWEA) publishes a new report with a vision for a modern renewable energy power system, which sets out how the grid can integrate increasing amounts of wind energy.

'Powering Europe', launched today at the GRIDS 2010 conference and exhibition in Berlin organised by EWEA, argues there are no major technical barriers - but there are major economic benefits - to integrating large amounts of fuel- and pollution-free wind energy into Europe's electricity grid.

The new report identifies infrastructure and markets as the two key barriers to hugely increasing the amount of wind power in Europe's electricity supply.

In order to deliver the onshore and offshore wind energy from where it is produced to where it will be consumed, Europe needs:

    - extended, upgraded and better connected grids,
    - fair and effective competition in a truly internal European market in
      electricity.

The economic benefits of creating a single market in electricity and improving the infrastructure are substantial, according to the new EWEA report. The benefits of a better interconnected grid include a EUR1,500-million yearly reduction in total operational costs of power generation, due to increased availability of all generation capacity.

The benefit of integrating 265 Gigawatt (GW) of wind into Europe's grids by 2020 - compared to no further growth in wind power capacity - would be a saving of EUR41.7bn per year in the cost of electricity. This is a 'merit order' effect of EUR11 for every MWh produced, not just those MWh produced by wind turbines. And if our electricity markets are functioning, that is a saving that could be passed on to consumers.

The electricity grid infrastructure needed to accommodate increasingly large amounts of renewable energy and create effective competition in a single market in electricity, including a new offshore grid in Europe's Northern Seas (North Sea, Irish Sea and Baltic Sea), as well as a number of improved interconnections across continental Europe (especially between Spain and France, but also between Germany and its neighbours across the Alps and in eastern and south eastern Europe).

HVDC cables are an attractive new technological option for long-distance electricity superhighways such as the offshore grid that is required in the near future, says the new report.

The report also reveals that flexibility will need to be a key feature of European power systems in the future. This means power generation will have to be more flexible to take into account variable sources of power, such as wind and solar. Smart grids will be needed to allow management of demand as well as improved management of supply, and largely national grids will have to be better interconnected. EWEA's new report shows how Denmark, Germany, Spain, Ireland and the Netherlands have managed their power systems much more flexibly than in the past.

Daniel Dobbeni, President of ENTSO-E, said: "this report is a very welcome publication with a clear view towards 2020, 2030 and 2050. Together with our Ten Year Network Development Plan, it helps building a common understanding on the major issues surrounding the integration of wind energy in the European grids. The report also provides arguments that will certainly be in the centre of policy debate as we can presently observe from the publication of the Commission's blueprint for an integrated European energy network."

EWEA - European Wind Energy Association asbl/vzw

http://www.ewea.org

SOURCE EWEA