Economic Considerations Underlying the Adoption of HVDC and HVAC for the Connection of an Offshore Wind Farm in Korea

Abstract

-Wind energy is created in mega-sized wind farms situated kilometers off shore. In fact, two possibilities are considered for the transmission system between the offshore wind farm and the onshore grid: high-voltage direct current and high-voltage alternating current. From this point of view, the current paper aims to compare both systems for a 2 GW wind farm situated 80 km from the Point of Common Coupling on an economic basis using a discounted cash flow analysis. A tool is developed in Microsoft Excel to allow for quick insight in the variation of input parameters.

Economic Analysis for HVDC Transmission System in Pakistan

“…Various generalized methods to perform the economic comparisons are shown in Figure 6. Discounted cash flow (DCF) is selected in this paper, where all forthcoming cash flows are calculated and discounted to obtain net present values (NPV) [6]. …”

“…The losses in the VSC based HVDC transmission grid originate from the VSCs (e.g., filters, HVDC station transformers and IGBTs,) that are roughly 7.4% (1.8% for every station), and line joule losses [6]. Losses in the HVAC system are determined by considering the losses in ac grid station (e.g.…”

“…High voltage direct current (HVDC) technology is proposed for bulk power transmission. Reactive power support, black start capability, small filter sizes, and the ability to change the power direction without altering the polarity of the dc link voltage make voltage source converter (VSC) based HVDC a viable candidate to transmit the power from south to Punjab with reduced investment than HVAC [6], [7].…”

“…The study conducted is based on the economic factors like; cost comparison, net present value, initial capital cost, annual cost, taxation rate, discounted factor and annuity factor. DCF is proposed for analysis of VSC based HVDC bipolar transmission system [6], [11]. Discounted cash flow technique is a reliable tool to make decisions about capital budgeting of project [12], [13].…”

Economic Analysis of Power Transmission Lines using Interval Mathematics

“…All costs are expressed in INR/km (1 US$= 63 INR). The capital investment cost for constructing the lines can be assigned to one or more years before the line is energized [26]. In this study, it is assumed that all the capital costs occur in the construction starting year.…”