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The New Energy State: Offshore Governance Regimes for Renewables as Natural Resources

Author

Listed:
  • Anupama Sen
  • Tooraj Jamasb

Abstract

Maturing renewable energy technologies are birthing new industry configurations, with offshore wind—with the EU holding 80 percent of global capacity—and “energy islands,†as notable examples. However, a clear conceptualization of the role of the state and governance framework is lacking, alongside growing pressure for the state to define the path forward. This paper analyzes recent developments in emerging EU offshore renewable energy regimes, drawing three implications that show the need for new governance frameworks. First, there is a reconfiguration of energy industry structures around changing economics and policies, in a repeat of historical experience. Second, energy islands increasingly represent features of a natural resource in fixed supply, with the economic nature of offshore energy gradually transiting from the sub-domain of renewable energy economics towards natural resource economics. Third, to realize their economic value, governance frameworks are needed to enable these resources to harmonize with other resources in fixed supply, such as the land on which they are sited, which is constitutionally under the stewardship of the state. We set out criteria for governance of these emerging offshore renewables, to underpin the changing industry landscape and new role of the state within it. JEL Classification: L22, L24, L51, Q20, Q24, Q28, Q32, Q38, Q48

Suggested Citation

  • Anupama Sen & Tooraj Jamasb, 2024. "The New Energy State: Offshore Governance Regimes for Renewables as Natural Resources," The Energy Journal, , vol. 45(6), pages 61-77, November.
    • Handle: RePEc:sae:enejou:v:45:y:2024:i:6:p:61-77
    DOI: 10.1177/01956574241281565
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    References listed on IDEAS

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    1. Roques, Fabien & Finon, Dominique, 2017. "Adapting electricity markets to decarbonisation and security of supply objectives: Toward a hybrid regime?," Energy Policy, Elsevier, vol. 105(C), pages 584-596.
    2. Vasconcelos, Rafael Monteiro de & Silva, Lara Luana Cirilo & González, Mario Orestes Aguirre & Santiso, Andressa Medeiros & de Melo, David Cassimiro, 2022. "Environmental licensing for offshore wind farms: Guidelines and policy implications for new markets," Energy Policy, Elsevier, vol. 171(C).
    3. 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.
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    More about this item

    Keywords

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    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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