(This abstract was borrowed from another version of this item.)"> (This abstract was borrowed from another version of this item.)">
[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/enp/wpaper/eprg2323.html
   My bibliography  Save this paper

Comparison of policy instruments in the development process of offshore wind power in North Sea countries

Author

Listed:
  • Hongyun Zhang
  • Michael G. Pollitt
Abstract
Offshore wind power has made remarkable strides over the past decade, establishing itself as a financially viable technology with substantial potential to drive the energy transition of North Sea countries. The energy crisis commencing in 2021 further underscored the critical role of offshore wind in attaining net zero climate (or climate neutrality) objectives, prompting North Sea countries to adopt comprehensive strategies, including a fundamental energy system overhaul centred around offshore wind. Consequently, these countries have set ambitious offshore wind installation targets for both 2030 and 2050. To assess the attainability of these targets, this paper conducts an extensive policy analysis of the eight nations surrounding the North Sea, focusing primarily on the development stage, a crucial determinant of project success. Notably, competitive tenders and Contract for Difference (CfD) mechanisms are becoming standard tools across the region, indicating a collective shift towards efficient subsidy frameworks. Historical data and disparities suggest the formidable challenges in achieving the 2030 and 2050 targets, with streamlining the approval process emerging as a top priority. The emergence of negative subsidies in conjunction with zero-bid scenarios is reshaping industry paradigms is significantly impacting offshore wind project economics.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Hongyun Zhang & Michael G. Pollitt, 2023. "Comparison of policy instruments in the development process of offshore wind power in North Sea countries," Working Papers EPRG2323, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg2323
    as

    Download full text from publisher

    File URL: https://www.jbs.cam.ac.uk/wp-content/uploads/2023/12/eprg-wp2323.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Snyder, Brian & Kaiser, Mark J., 2009. "Offshore wind power in the US: Regulatory issues and models for regulation," Energy Policy, Elsevier, vol. 37(11), pages 4442-4453, November.
    2. Jansen, Malte & Beiter, Philipp & Riepin, Iegor & Müsgens, Felix & Guajardo-Fajardo, Victor Juarez & Staffell, Iain & Bulder, Bernard & Kitzing, Lena, 2022. "Policy choices and outcomes for offshore wind auctions globally," Energy Policy, Elsevier, vol. 167(C).
    3. Rentier, Gerrit & Lelieveldt, Herman & Kramer, Gert Jan, 2023. "Institutional constellations and policy instruments for offshore wind power around the North sea," Energy Policy, Elsevier, vol. 173(C).
    4. Oscar Fitch-Roy, 2016. "An offshore wind union? Diversity and convergence in European offshore wind governance," Climate Policy, Taylor & Francis Journals, vol. 16(5), pages 586-605, July.
    5. Malte Jansen & Iain Staffell & Lena Kitzing & Sylvain Quoilin & Edwin Wiggelinkhuizen & Bernard Bulder & Iegor Riepin & Felix Müsgens, 2020. "Offshore wind competitiveness in mature markets without subsidy," Nature Energy, Nature, vol. 5(8), pages 614-622, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pollitt, Michael G. & von der Fehr, Nils-Henrik M. & Willems, Bert & Banet, Catherine & Le Coq, Chloé & Chyong, Chi Kong, 2024. "Recommendations for a future-proof electricity market design in Europe in light of the 2021-23 energy crisis," Energy Policy, Elsevier, vol. 188(C).
    2. Newbery, David M. & Biggar, Darryl R., 2024. "Marginal curtailment of wind and solar PV: Transmission constraints, pricing and access regimes for efficient investment," Energy Policy, Elsevier, vol. 191(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hughes, Llewelyn & Longden, Thomas, 2024. "Offshore wind power in the Asia-Pacific: Expert elicitation on costs and policies," Energy Policy, Elsevier, vol. 184(C).
    2. Jansen, Malte & Gross, Rob & Staffell, Iain, 2024. "Quantitative evidence for modelling electric vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    3. Santiago Salvador & Xurxo Costoya & Francisco Javier Sanz-Larruga & Luis Gimeno, 2018. "Development of Offshore Wind Power: Contrasting Optimal Wind Sites with Legal Restrictions in Galicia, Spain," Energies, MDPI, vol. 11(4), pages 1-25, March.
    4. Hastings-Simon, Sara & Leach, Andrew & Shaffer, Blake & Weis, Tim, 2022. "Alberta's Renewable Electricity Program: Design, results, and lessons learned," Energy Policy, Elsevier, vol. 171(C).
    5. Malleret, Simon & Jansen, Malte & Laido, Ahti Simo & Kitzing, Lena, 2024. "Profitability dynamics of offshore wind from auction to investment decision," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    6. Rentier, Gerrit & Lelieveldt, Herman & Kramer, Gert Jan, 2023. "Institutional constellations and policy instruments for offshore wind power around the North sea," Energy Policy, Elsevier, vol. 173(C).
    7. Salvador, Santiago & Gimeno, Luis & Sanz Larruga, F. Javier, 2019. "The influence of maritime spatial planning on the development of marine renewable energies in Portugal and Spain: Legal challenges and opportunities," Energy Policy, Elsevier, vol. 128(C), pages 316-328.
    8. Xinyu Li & Marco Haan & Sander Onderstal & Jasper Veldman, 2023. "A Wind Tunnel Test of Wind Farm Auctions," Tinbergen Institute Discussion Papers 23-046/VII, Tinbergen Institute.
    9. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    10. Emblemsvåg, Jan, 2022. "Wind energy is not sustainable when balanced by fossil energy," Applied Energy, Elsevier, vol. 305(C).
    11. Luis Ferney Moreno Castillo (director) & Carlos Villanueva (coordinador) & Manuel Salvador Acuña Zepeda [y otros], 2021. "Anuario iberoamericano de derecho de la energía. Volumen III, El derecho de la energía sostenible," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1287.
    12. R, Hall & E, Topham & E, João, 2022. "Environmental Impact Assessment for the decommissioning of offshore wind farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    13. Jansen, Malte & Beiter, Philipp & Riepin, Iegor & Müsgens, Felix & Guajardo-Fajardo, Victor Juarez & Staffell, Iain & Bulder, Bernard & Kitzing, Lena, 2022. "Policy choices and outcomes for offshore wind auctions globally," Energy Policy, Elsevier, vol. 167(C).
    14. Dario Maradin & Bojana Olgić Draženović & Saša Čegar, 2023. "The Efficiency of Offshore Wind Energy Companies in the European Countries: A DEA Approach," Energies, MDPI, vol. 16(9), pages 1-16, April.
    15. Kristina Govorukha & Philip Mayer & Dirk Rübbelke, 2021. "Fragmented Landscape of European Policies in the Energy Sector: First-Mover Advantages," CESifo Working Paper Series 9093, CESifo.
    16. Ali Darudi & Hannes Weigt, 2024. "Review and Assessment of Decarbonized Future Electricity Markets," Energies, MDPI, vol. 17(18), pages 1-38, September.
    17. Stefan Ćetković & Aron Buzogány & Miranda Schreurs, 2016. "Varieties of clean energy transitions in Europe: Political-economic foundations of onshore and offshore wind development," WIDER Working Paper Series wp-2016-18, World Institute for Development Economic Research (UNU-WIDER).
    18. Pryor, Sara C. & Barthelmie, Rebecca J., 2024. "Wind shadows impact planning of large offshore wind farms," Applied Energy, Elsevier, vol. 359(C).
    19. Kaldellis, John K. & Zafirakis, D., 2011. "The wind energy (r)evolution: A short review of a long history," Renewable Energy, Elsevier, vol. 36(7), pages 1887-1901.
    20. Gorenstein Dedecca, João & Hakvoort, Rudi A. & Herder, Paulien M., 2017. "Transmission expansion simulation for the European Northern Seas offshore grid," Energy, Elsevier, vol. 125(C), pages 805-824.

    More about this item

    Keywords

    Offshore wind; Contract for Difference; North Sea;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:enp:wpaper:eprg2323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ruth Newman (email available below). General contact details of provider: https://edirc.repec.org/data/jicamuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.