The Regulatory State and the Emerging Offshore Wind Energy Market in the United States

Abstract

Offshore wind energy technologies are generally regarded as variable baseload systems. They could therefore serve a crucial role in a net-zero or carbonneutral 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 of 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 resolving common issues could make project review process(es) more efficient. Considering experiences in other jurisdictions such as the UK, such efficiency gains are achievable while protecting the environment and legitimate interests of other users in the outer continental shelf.