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Offshore wind energy policies and their effects

Offshore wind energy policies and their effects. Regulation in the UK, Denmark and the Netherlands to support the development of offshore wind parks. EWEC 2007 session CB1. Eeke H.M. Mast. Wind Energy Research Group & Economy of Infrastructures DUWIND . Contents. Introduction

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Offshore wind energy policies and their effects

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  1. Offshore wind energy policies and their effects Regulation in the UK, Denmark and the Netherlands to support the development of offshore wind parks EWEC 2007 session CB1 Eeke H.M. Mast Wind Energy Research Group & Economy of InfrastructuresDUWIND

  2. Contents • Introduction • Regulation approaches in UK DK & NL • Comparison • Main conclusions and options for change for NL

  3. Introduction Needs new legislation and regulation: • New use of offshore waters • Most laws land-based or up to 12 nm • Adaptations made for offshore generation • Support deployment for political targets • Investor’s confidence (EWEA study) How has regulation enhanced development by lowering financial risk and addressing regulatory uncertainty?

  4. Approach • Compare best practices policy initiatives (Shaw ea, 2003) • Political targets & first farm(s) in UK Denmark and NL • Different approaches in: • Consent procedure • Financial support • Grid arrangements • Anti-speculation clauses* • Transparency financial burden • Allowances innovation • One-stop-shop • Securing pioneering risks • Sharing grid burden* *In presentation, rest left to paper

  5. UK • Consent: • Preference areas in Round 1 and 2 • Tender procedures: in rounds, pre-qualification • Fee to enter tender • Fee for option: claim on location • Financial support: (paper) • Grid arrangements: • New regulation will entail transport tariff over offshore grid • TSO regulates offshore grid (consultation process 2005)

  6. Denmark • Consent: • 5 Preference areas since 1997, soon update (EP 07) • Tenders: • one stop shop DEA, consent DTE • pre-qualification and negotiated tender • Financial support: (paper) • Grid arrangements: • Internal grid for developer, up to transformer station • From transformer station to onshore grid: socialised

  7. Netherlands • Consent: • Exclusion areas other use • First come first serve • Claim on location • when permit request accepted, including EIA. • Financial support: • MEP: kWh support mechanism: ‘traffic light’ • Grid arrangements: • Developers pays for grid connection to high voltage grid

  8. Comparison (1): installed power *: Expected installation

  9. Comparison (2): regulation • Consent: • Site selection and time fixed (DK) Open (NL) • Anti-speculation using fees in UK, no claim until EIA in NL • Financial support: • NL working on new procedure, present scheme gives no financial control. • Grid: • Denmark and UK different approach to sharing burden grid. • Increased costs and therefore risk for developers in NL

  10. Main conclusions • Netherlands: • procedure too open, causes ‘traffic light’ policy • Time restriction: Government budget • Area restriction: Anti-speculation & site selection: bundling • Addition to best practices for policy initiatives Shaw ea: • Site selection • Control governmental expenditure • Clarity of procedure

  11. Thank you for your attention

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