Should Europe build energy islands?

With an expert eye

Paweł Biegajski, specialist in financing energy projects

The world is confronted with significant challenges concerning energy management. In the coming years, there’s a pressing need to transition away from fossil fuel-based models toward renewable energy sources. This transformation involves a series of subsequent actions that must be undertaken to ensure that green technologies can provide energy security for society.

The world faces major challenges in managing energy. In the years ahead, there’s a critical need to shift from fossil fuels to renewable energy sources. This transition requires a series of actions to ensure that green technologies can guarantee energy security for society.

What are energy islands?

The Pomeranian Voivodeship Board defines an energy island as a self-sufficient system that brings together energy producers, consumers, and prosumers. It has the capability to regulate energy production and consumption in real-time and can cooperate with other independent systems and local energy distributors, such as distribution system operators. In simpler terms, an energy island operates independently from the main grid and utilizes distributed energy resources.

Depending on its scale, an energy island can be categorized as:

• Micro energy island: Typically serving only one building.
• Macro energy island: Serving larger areas like cities or villages.
• Energy island in the seas: Harnessing offshore wind energy potential.

How does an energy island work?

The purpose of building energy islands is to ensure stable and safe energy supplies for a given area. This is done by taking a series of actions:

• generating electricity, heat, cold, biogas or biomethane from renewable energy sources ,
• storing energy, thanks to which it is possible to use it in moments of limited generation,
• supplying energy to direct consumers located within or outside the area of ​​operation of the energy island,
• consumption or sharing of energy by entities forming the island,
• energy distribution using the local network,
• providing services in the electromobility segment (e.g. car sharing, car pooling or charging of electric cars),
• providing other services regarding, e.g. rational energy consumption.

In practice, technological solutions used on energy islands will differ. This issue is well illustrated by specific examples from real life.

Examples of energy islands

In our analysis, we will consider the concept of two energy islands. The first is the palace and park complex with the Sanctuary of St. Jacek in Kamień Śląski . It consists of seven facilities equipped with pioneering energy infrastructure in our country, which includes:

• heat pumps installed in series,
• PV power plant,
• a wind turbine ,
• hot water storage with heat exchanger,
• sewage treatment plant using a closed circuit, using treated sewage to irrigate green areas.

The first project, located in Kamień Śląski, is led by the Father Sebastian Kneipp Scientific and Research Institute and the Sebastianeum Silesiacum Rehabilitation and Recreation Complex. This complex is nearly self-sufficient in energy, relying entirely on renewable sources for its generation.

The second project involves the construction of an energy island in the North Sea. Originating from Denmark, this initiative aims to build two islands by 2030, with one being fully artificial and capable of generating 3 GW of power, expandable to 10 GW. Collaborating with Germany, Denmark plans to execute this project, with the first phase involving the operation of Princess Elizabeth Island. Situated 45 km from the Belgian coast, this island will connect 3.5 GW offshore wind farms to the onshore high-voltage grid. Spanning approximately 6 hectares, it will serve as a central hub for new interconnections with Great Britain and Denmark.

Currently, the world’s longest interconnector, named Viking, has been completed to enable electricity transmission between these countries. Operating at a voltage of 525 kV DC, the HVDC connection covers 1,400 km of cabling, with 1,250 km laid under the sea and the remainder on British land. Once operational, the network is expected to provide power to up to 1.4 million households.

Source: ultramapglobal.com

Tinne Van der Straeten, Belgium’s Minister for Energy, emphasized that the plans for the energy island were developed as part of the European recovery plan. The federal government has accelerated the development of offshore wind energy, aiming to transform the North Sea into one massive green power plant. By implementing the first energy island, along with new interconnections, three new wind farms in the North Sea, and the renovation of the first offshore wind zone, Belgium seeks to quadruple offshore wind capacity by 2040. This ambitious goal aims to enhance energy independence, reduce energy bills, and mitigate CO2 emissions.

The growing interest in energy islands is evident with the establishment of Copenhagen Energy Islands (CEI), which is actively developing multiple projects across the North Sea, Baltic Sea, and Southeast Asia. Additionally, the Energy Policy Group has proposed the construction of a Romanian-Bulgarian island, which could eventually connect with other Black Sea countries such as Turkey, Georgia, and potentially Azerbaijan.

In the remainder of the article, we will delve into these larger initiatives that are poised to have a significant impact on the European energy sector in the forthcoming decades.

Does Europe need energy islands?

The energy industry of the future should:

• ensure independence from external networks and energy suppliers,
• contribute to the implementation of the principle of sustainable development, primarily through the extensive use of renewable energy sources,
• be cost-effective,
• be flexible, i.e. adaptable to local needs and conditions.

Energy islands address these demands by providing a centralized infrastructure for offshore wind farms. Without access to such infrastructure, wind farms incur significant transmission and maintenance expenses. Each wind farm requires its own cable connection to the onshore power grid, resulting in high costs for design, purchase, and installation. However, with the ambitious energy plans of many countries, numerous energy islands are expected to be constructed in the North Sea and beyond. It’s projected that by 2050, the capacity of wind farms in the northern seas could reach 300 GW. Placing wind farms closer to energy islands can significantly reduce project complexity and costs, ultimately leading to lower electricity prices for end users.

Flexibility is another key advantage of energy islands. By connecting to millions of collection points, they can transport energy to where it’s needed most. This is crucial given the fluctuating nature of renewable energy production. Energy islands equipped with storage systems can store surplus energy during periods of abundance and distribute it during times of increased demand.

The concept of energy islands addresses current challenges in the energy market, both in Europe and globally. However, procedural issues and costs remain the main obstacles to their further development.

Challenges facing the energy island concept

Achieving climate neutrality necessitates expanding renewable energy infrastructure, including offshore wind installations. As of 2023, global offshore wind (OWW) capacity reached 63.2 GW, with Europe and China accounting for significant portions. By 2030, the North Sea alone is projected to host 76 GW of wind energy capacity. However, the primary challenge lies not in building additional offshore wind farms, but rather in integrating them with global energy systems, which entails significant legal costs and risks. Energy islands offer a solution to this challenge.

Nevertheless, it’s important to recognize that the concept of energy islands is relatively new. Currently, constructing an artificial island or platform several kilometers offshore involves substantial costs, including investment outlays for physical and electrical infrastructure, operating costs, and expenses related to technological development, such as high-voltage direct current (HV/DC) and Power-to-X equipment.

To facilitate the widespread adoption of energy islands, standard models must be developed to serve as scalable solutions adaptable to market dynamics. Additionally, research and development efforts, particularly in HV/DC equipment, aim to reduce device dimensions, thereby decreasing platform weight and steel usage in construction.

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[1] Resolution No. 931/274/13 of August 8, 2013, concerning the adoption of the Regional Strategic Program in the field of energy and environment.

[2] Renewable Capacity Statistics (2023) by the International Renewable Energy Agency (IRENA).

[3] T. Palmowski, E. Kwiatkowska, “Development of offshore wind energy in Poland,” published by the Polish Geographical Society, page 389.

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