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Overcoming Legal Challenges for Offshore Electricity Grid Development: A Case Study of the Cobra and Kriegers Flak Projects

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Document pages: 33 pages

Abstract: The chapter, published in 2012, examines the main legal concerns that had arisen (as at 2012) in connection with the Cobra and Kriegers Flak hybrid offshore wind electricity transmission interconnector projects. These were: the problems presented for combined solutions by the separation of grid planning and development from regulatory regimes for connecting new generating plant, and particularly where legal priority is given to the connection of renewable energy generators; the potential for subsidies offered by states for renewable energy production to discourage participation by generators in integrated grid developments); the perceived reluctance of national regulators both to allow the recovery by grid developers of investment costs (through transmission tariffs) for joint projects that are conducted with other system operators in order to realise regional as well as national benefits, and to sanction cost recovery unless there is clear demand from generators for additional grid capacity; the adoption of incompatible approaches under national regulatory regimes toward the prioritisation of access for renewable energy generation over energy from other sources; and the frequently bewildering variety of permits for construction and operation that developers must obtain from bodies with regulatory authority in all of the different jurisdictions in which interstate grid development is conducted.

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