Offshore Wind Power Plant and Electrical Network Development: Romanian Case Study

Abstract

This paper presents the technical and economic interaction with the grid of an offshore wind power plant development in Romania, on the coastal area of the Black Sea. Offshore wind power plants are currently very expensive and they can hardly compete with other power plants, even onshore wind power plants. In the context of capital costs decreasing over time, of possible European Union incentivizing schemes, and of requirements resulted from the twenty-first Conference of Parties (COP 21), this paper analyzes the economics of offshore developments in Romania considering the current status of the national grid. The results of the study provide guidance on project economics and development, and also on the need for transmission grid development. The results indicate that an investment starting within a few years on the Black Sea coastal area has economic potential for a large offshore wind power plant with additional costs for grid strengthening limited to 1% of the main investment. No strengthening investments may be required if the plant capacity is limited to 264 MW.