Optimal interconnection and renewable targets for north-west Europe

We present a mixed-integer, linear programming model for determining optimal interconnection for a given level of renewable generation using a cost minimisation approach. Optimal interconnection and capacity investment decisions are determined under various targets for renewable penetration. The model is applied to a test system for eight regions in Northern Europe. It is found that considerations on the supply side dominate demand side considerations when determining optimal interconnection investment: interconnection is found to decrease generation capacity investment and total costs only when there is a target for renewable generation. Higher wind integration costs see a concentration of wind in high-wind regions with interconnection to other regions.

► We use mixed-integer linear programming to determine optimal interconnection locations for given renewable targets.
► The model is applied to a test system for eight regions in Northern Europe.
► Interconnection reduces costs only when there is a renewable target.
► Wind integration costs affect the interconnection portfolio.