Abstract
Europes energy system is undergoing a major transformation driven by decarbonization efforts, with offshore wind power emerging as a cornerstone of future electricity generation. The North Sea alone holds an estimated potential of over 300 GW in offshore wind capacity, as outlined in the Oostende Declaration. This paper examines the implications of different offshore grid topologies on the European power system, focusing on three key dimensions: socio-economic surplus in North Sea-bordering countries, offshore wind farm revenues, and
power flow distribution across critical transmission corridors. We find that grid topology has a significant influence on offshore wind farm profitability and regional electricity prices. Meshed offshore grids enable more efficient power flows and better market integration, resulting in higher average prices for offshore producers and more balanced price levels across bidding zones. Our results show that interconnected grid strategies can increase socio-economic surplus and reduce price volatility.