High voltage direct current systems through submarine cables for offshore wind farms: A life-cycle cost analysis with voltage source converters for bulk power transmission

The utilization of alternative power systems is prominent for energy transmission, supply, and security. This paper conducts an economic analysis for offshore wind farms, in which bulk power of wind energy is transmitted from offshore wind farms with high voltage direct current through submarine cables. The motivation is the examination of the hypothesis that any asset should be conditional on the total cost of infrastructure and installation, being at least amortized or generating profits depending on the interest rates of any countries. This hypothesis is tested with a life-cycle cost analysis using 40-year lifetime. The operation time is 27 years and conducted with a cumulative cash flow calculation. The transmission route starts from Bozcaada and Gokceada and ends in Istanbul (Turkey). Based on 600 MW voltage source converter, 222 km submarine cables are proposed to be a project for investors and decision makers. The investment seems feasible in terms of the generated profit and economic findings such as 10-year break-even point, and 121.11 M$ net present value. Sensitivity analysis reveals that government subsidies on the infrastructure and environmental costs are powerful incentives and create solutions. Thereby, economic and environmental advantages of this investment can provide a model for other selected regions in Turkey and any other country.(c) 2022 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Automated summary

This paper conducts an economic analysis for offshore wind farms and tests a hypothesis using a life-cycle cost analysis. The study proposes a project for submarine cables and finds that the investment is feasible in terms of profitability and environmental advantages. The results can provide a model for other regions.