Danish developer Ørsted and Belgian transmission system operator Elia Group have called for a review of the framework for hybrid interconnectors in Europe, with a specific focus on the fair distribution of risks and benefits.
Risks must be shared equitably amongst transmission system operators, wind farm developers and society at large, the companies argued in a joint briefing paper.
They propose two options: capacity-based two-sided contracts for difference, and a ‘Commercial +’ approach that enables power purchase agreements for offshore wind farms connected to two or more markets.
The paper also calls for regional planning at sea basin level to prioritise hybrid projects with the highest potential for generating socioeconomic welfare and reaching net zero.
Regional offshore investment banks should allocate existing funding streams for each sea basin area in a more efficient manner to maximise impact, with private investors invited to contribute.
Countries and the EU should encourage the development of hybrid projects to “speed up the learning loops – commercial, technical and regulatory – and deliver more and better projects on an accelerated timeline”.
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