The Regulatory State and the Emerging Offshore Wind Energy Market in the US
46 Pages Posted: 6 Aug 2022 Last revised: 3 Apr 2023
Date Written: August 1, 2022
Offshore wind energy systems are generally regarded as variable baseload technologies and can therefore serve a crucial role in a net-zero or carbon-neutral electricity supply grid. With the spate of growing commercial and government-policy interests in offshore wind, it is important to examine how and to what extent the framework for assessing and reviewing project plans, as well as the process of engaging with impacted stakeholders, or alternative users of the outer continental shelf, can become more efficient and less controversial. Thus, this paper discusses the emerging offshore wind energy market in the U.S. and highlights the role of the regulatory state in facilitating a more efficient leasing and permitting process for projects without compromising the protections afforded under applicable laws and regulations. Adopting a thorough yet standardized review of relevant project plans and proactive stakeholder engagement processes is recommended at an early or appropriate time during the permitting process. Understanding the opportunity costs of delayed and canceled projects, addressing misperception of risks, and standardizing best practice measures for addressing common issues identified from review processes could go a long way in making a project’s impact assessment and permitting framework more efficient while protecting the environment and legitimate interests of other users in the outer continental shelf.
Keywords: Offshore Wind, Energy Law and Policy, Electricity Markets, Energy Regulation, Environmental Assessment
JEL Classification: Q4, Q2, Q28, Q48, L94, L5
Suggested Citation: Suggested Citation