“Take the long way down”: Integration of large-scale North Sea wind using HVDC transmission

We analyze the impact of extensive wind development in Germany for the year 2015, focusing on grid extensions and price signals. We apply the electricity generation and network model ELMOD to compare zonal, nodal, and uniform pricing approaches. In addition to a reference case of network extensions recommended by the German Energy Agency (Dena), we develop a scenario to transmit wind energy to major load centers in Western and Southern Germany via high-voltage direct current (HVDC) connections. From an economic-engineering standpoint, our results indicate that these connections are the most economic way to manage the integration of large-scale offshore wind resources, and that nodal pricing is most likely to determine the locales for future investment to eliminate congestion. We conclude with a description of the model's potential limitations.