Assessment of Cost-Benefit Analysis for Offshore Electricity Infrastructure Development

25 Pages Posted: 21 Oct 2017

See all articles by Pradyumna Bhagwat

Pradyumna Bhagwat

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Tim Schittekatte

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Nico Keyaerts

European University Institute

Leonardo Meeus

European University Institute; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Date Written: October 2017

Abstract

The application of cost-benefit analysis (CBA) for offshore electricity infrastructure projects with a pan-European impact is discussed. An analytical framework for the evaluation of CBA methodologies is presented. The framework is then applied to assess the CBAs of three offshore infrastructure projects (EWIC, COBRAcable and ISLES). Overall, the CBAs assessed already comply with several dimensions of the analytical framework. However, based on this assessment it is found that scope for improvement in quality exists in three areas namely, in considering project interactions, in dealing with uncertainty and in making the results between CBAs comparable by ensuring full monetisation. Furthermore, the research also confirms the view that a common harmonised CBA methodology is essential for selection of PCIs.

Keywords: cost-benefit analysis, offshore infrastructure, electricity transmission, transmission expansion planning

Suggested Citation

Bhagwat, Pradyumna and Schittekatte, Tim and Keyaerts, Nico and Meeus, Leonardo, Assessment of Cost-Benefit Analysis for Offshore Electricity Infrastructure Development (October 2017). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2017/53, Available at SSRN: https://ssrn.com/abstract=3056309 or http://dx.doi.org/10.2139/ssrn.3056309

Pradyumna Bhagwat (Contact Author)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Tim Schittekatte

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Nico Keyaerts

European University Institute ( email )

Fiesole, Tuscany
Italy

Leonardo Meeus

European University Institute ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

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