F A C U L T Y O F S C I E N C E

U N I V E R S I T Y O F C O P E N H A G E N

MSc programme in Environmental and Natural Resource Economics

Academic advisor: Peder Andersen

Submitted: 11/11/2014

Master’s thesis

Dionysia Adamantidou

Cost efficient deployment of wind energy projects in Belgium and cross border cooperation

Cost efficient deployment of wind energy projects in Belgium and

cross border cooperation

2

Abstract

According to the Directive 2009/28/EC, the Member States are allowed to use

cooperation mechanisms for the achievement of their “2020 national target” in the

most cost effective way, when differences in technological costs between them have

been identified. Reports of “RES4LESS” project have shown that if Belgium

cooperates as a User country with Denmark as a Host for the deployment of renewable

energy resources, there will be cost savings but there is not estimation of the cost

saving for each renewable technology.

Under the above framework, this paper, firstly, using the method of cost effectiveness

analysis evaluates the difference in the average costs of wind energy generation and

the difference in the average abatement costs in both Member States and then

discusses a potential cross border cooperation by presenting cooperation options, key

drivers, benefits, costs and barriers in order to identify under which conditions can be

achieved cost efficient deployment of offshore wind energy through the cooperation

mechanisms.

The analysis showed that even though initially cost differences have been identified, it

does not imply necessarily cost effective and efficient deployment of renewable

energy resources as the use of the cooperation mechanisms entailed direct and indirect

costs and benefits for both Member States which do not share equally and hence their

overall evaluation it is necessary in order to decide if finally the cross border

cooperation should be developed.