The Implications for Policy
The recent success of the offshore wind industry in Europe demonstrates that policy mechanisms can be instrumental in helping the industry effectively achieve and prove cost reductions. However, the lessons learned from Europe as well as observation of the successes and difficulties in other nascent offshore wind markets around the world suggest that, when formulating an effective policy approach, policy makers must consider a myriad of factors including how to manage the integration of power to the grid, promoting system flexibility, and power market design. Accordingly, policy approaches may vary market by market and depend, to a great extent, on the current stage of the market’s development.
KeywordsOffshore wind policy Support scheme design Market creation Operational challenges
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