{"id":15220,"date":"2023-04-24T10:14:13","date_gmt":"2023-04-24T09:14:13","guid":{"rendered":"https:\/\/www.westwoodenergy.com\/?p=15220"},"modified":"2024-04-15T13:03:44","modified_gmt":"2024-04-15T12:03:44","slug":"westwood-insight-wider-benefit-in-offshore-wind-decision-making","status":"publish","type":"post","link":"https:\/\/www.westwoodenergy.com\/news\/westwood-insight\/westwood-insight-wider-benefit-in-offshore-wind-decision-making","title":{"rendered":"Westwood Insight \u2013 \u2018Wider benefit\u2019 in offshore wind decision-making"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]This insight is excerpted from the executive summary of the second in a series of thematic reports produced by Westwood and available to <\/em>WindLogix<\/em><\/a><\/strong> subscribers as part of our enhanced coverage of commercial and investment themes in the offshore wind sector. In the report, we examine how government decision-making in relation to offshore wind has developed in recent years, particularly with regard to what we call \u2018wider benefit\u2019 criteria, which assesses developer proposals on the basis of a wide group of factors beyond a project\u2019s basic viability or its price.<\/em><\/p>\n

Lease and learn<\/strong><\/h3>\n

Offshore wind as an industry has existed for some 30 years in various shapes and forms, and leasing and other decision-making processes have evolved considerably over that time. In general, decision-making processes have grown more sophisticated in response to two factors: 1) an increase in commercial interest in developing offshore wind farms; and 2) an increase in the general economic and ecological footprint of offshore wind, bringing with it increased political scrutiny.<\/p>\n

These pressures have led governments across the world to design a variety of different structures and considerations for offshore wind decision-making. One of the more recent developments is the increased emphasis on \u2018wider benefit\u2019 criteria. In Europe, these developments have taken place somewhat gradually over the past 15-20 years, while in more youthful markets, regulators are grappling with the challenges of establishing leasing systems that are effective, sophisticated, and serve a variety of stakeholders in a much shorter time span. This can pose challenges for market participants.[\/vc_column_text][image_with_animation image_url=”15229″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default”][vc_column_text]\n

Maturity of Offshore Wind Market vs Emphasis on \u2018Wider Benefit\u2019
\nSource: Westwood WindLogix<\/h6>\n

The great and the good<\/strong><\/h3>\n

Westwood has divided the \u2018wider benefit\u2019 element of offshore wind decision-making into several segments that address local investment, technological development and environmental considerations. Such requirements are primarily observed in offshore wind leasing assessment criteria (as this is where governments most often bring their rule making power to bear) but can also be incorporated into subsidy application systems and elsewhere.<\/p>\n

The four aspects of \u2018wider benefit\u2019 identified are:<\/p>\n