HVDC links and Offshore wind

Energy flows from offshore wind to HVDC links; their prices have moved together.

HVDC links (energy) and Offshore wind (energy): 2 relationships.

How they are linked

1. Energy flow

Physical flow · 10% of flow · Offshore wind → HVDC links

Distant offshore farms use DC links to cut losses over long distances.

• 10% of Offshore wind's energy goes this way

2. Price link: demand driver

Cost and price · Moderate · Both ways

Distant offshore wind farms need HVDC export links, so offshore build-out drives orders for converters and cable. Both depend on the same scarce factory capacity, which has pushed up prices and lengthened delivery times.

• 0.14 monthly change correlation
• 0.35 12-month change correlation
• 2.63 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.