THE ROLE OF LAW IN FINANCING OFFSHORE WIND: GOING AGAINST THE TIDE OR FEEDING THE STORM

摘要

The International Energy Agency has calculated that in order to meet future energy demand by low-carbon supply worldwide investments are required of $3,5 trillion anually. The states bordering the North Sea have established that further development of energy projects at sea is essential for security of supply and to reach climate change goals, reducing CO2-emissions and increasing renewable energy production. The North Sea area will play a vital role because of the potential to produce electricity from especially wind, but also the tides and waves, to store CO2 in depleted hydrocarbon fields and to construct trans-European transmission infrastructure. Considering the costs of offshore projects, wind farms usually exceed €1 billion and electricity interconnectors €500 million, any reduction in the cost of capital results in a significant reduction of overall project costs which can be invested in other renewable energy projects. Law and policy should stimulate investments in such projects. In addition, governments should financially support the road to economic viability of promising technologies where possible. This contribution will address in which ways the law can either support or hinder investments in renewable energy sources and legal rules which influence the cost of capital. The law plays a crucial role in the both attracting investors and cost of capital in general as investors most prominently require legal certainty and because the law can be an important tool to allow for the hedging of different risks the project encounters during its lifetime. The result is the identification of a number of legal instruments which can be used by legislators in both developed and developing countries to attract investors and potentially lower the cost of capital. The legal issues touched upon range from international investment law to European law and national property law.