Offshore bidding zones: key to efficient market integration

This opens the door to new opportunities, such as combining wind power with international electricity trading and producing and offshore storing of hydrogen. We have compiled all the research done on Offshore Bidding Zones in the paper 'The Offshore Bidding Zone'. The paper is a guidance document with the ultimate goal of realising an initial Offshore Bidding Zone with associated laws and regulations.

Offshore bidding zones are separate price regions for offshore hubs, within the European electricity market. The European electricity market consists of bidding zones, usually corresponding to country borders such as for the Netherlands and Germany, but some countries have multiple bidding zones, such as Denmark and Sweden. One of the main advantages of using offshore bidding zones is that it makes coordination between international electricity trading and wind power exploitation most efficient. This reduces the need for grid operators to intervene and saves costs.

The paper 'The Offshore Bidding Zone' is a summary of all the research done in recent years on offshore bidding zones. It is intended to guide discussions between various stakeholders, such as member states, regulators and market participants. The paper is meant to provide clarity on how these bidding zones could work. It is also important for wind farm developers what rules will apply to selling electricity and at what price. Changes in these rules could have a major impact on their business case. The ultimate goal is to create an initial offshore bidding zone with the associated laws and regulations.