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Trouble on the horizon: Securing the decommissioning of offshore renewable energy installations in UK waters

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  • Mackie, Colin
  • Velenturf, Anne P.M.

Abstract

This article elucidates the principal causes of risk to taxpayers created by the manner in which ‘security requirements’ are currently deployed by regulators in relation to the decommissioning of offshore renewable energy installations (OREIs) in English, Welsh and Scottish waters. It does so to inform policy development pertaining to their more efficacious utilization. In this context, security requirements are a regulatory tool which necessitate that developers/owners evidence their ability to finance decommissioning. Their deployment within the framework that governs the decommissioning of OREIs across the UK has not previously been ‘stress tested’ in the literature. Four causes are identified: excessive regulatory discretion; a flawed focus on financial strength; the dangers of gradual accrual; and uncertainty in decommissioning costing. A series of high-level policy recommendations are presented, several of which may be germane to other sectors and jurisdictions, as to how security requirements may be used more efficaciously to ensure decommissioning is performed.

Suggested Citation

  • Mackie, Colin & Velenturf, Anne P.M., 2021. "Trouble on the horizon: Securing the decommissioning of offshore renewable energy installations in UK waters," Energy Policy, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:enepol:v:157:y:2021:i:c:s0301421521003499
    DOI: 10.1016/j.enpol.2021.112479
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    References listed on IDEAS

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    1. Kaiser, Mark J. & Snyder, Brian, 2012. "Offshore wind decommissioning regulations and workflows in the Outer Continental Shelf United States," Marine Policy, Elsevier, vol. 36(1), pages 113-121, January.
    2. Boyd, James, 2001. "Financial Responsibility for Environmental Obligations: Are Bonding and Assurance Rules Fulfilling Their Promise?," RFF Working Paper Series dp-01-42, Resources for the Future.
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    5. Lordan-Perret, Rebecca & Sloan, Robert D. & Rosner, Robert, 2021. "Decommissioning the U.S. nuclear fleet: Financial assurance, corporate structures, and bankruptcy," Energy Policy, Elsevier, vol. 154(C).
    6. Topham, Eva & McMillan, David, 2017. "Sustainable decommissioning of an offshore wind farm," Renewable Energy, Elsevier, vol. 102(PB), pages 470-480.
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    Cited by:

    1. Kristia Kristia & Mohammad Fazle Rabbi, 2023. "Exploring the Synergy of Renewable Energy in the Circular Economy Framework: A Bibliometric Study," Sustainability, MDPI, vol. 15(17), pages 1-27, September.
    2. Anne P. M. Velenturf, 2021. "A Framework and Baseline for the Integration of a Sustainable Circular Economy in Offshore Wind," Energies, MDPI, vol. 14(17), pages 1-41, September.

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