ENTSO-E’s 5th position paper on Offshore Development: “Assessing Selected Financial Support Options for Renewable Generation” shows that, while additional support for new offshore wind farms connected to offshore hybrid projects may be required in some cases, re-allocating a share of congestion income from TSOs to wind farm developers faces several challenges. Specifically, the rationale on which this proposal is based, namely that an offshore hybrid project implies a redistribution effect between generation and transmission under the Offshore Bidding Zone setup, is not that straightforward under Advanced Hybrid Coupling, which will be applied in the Core and Nordics Capacity Calculating Regions by the time the next offshore hybrid projects are commissioned.

Furthermore, the paper finds that the options considered to implement this proposal would be inconsistent with several principles of the Internal Energy Market (including cost-reflectivity of network tariffs, absence of cross-subsidisation between transmission and other electricity activities, renewable remuneration, independence of NRAs). The focus should instead be on enhancing existing state-funded support schemes, awarded via competitive processes, for the purpose of cross-border renewables.

READ THE POSITION PAPER HERE.

VISIT THE DEDICATED ENTSO-E WEB SECTION ON OFFSHORE DEVELOPMENT HERE.