Dividing the sea into small bidding zones? The legal challenges of connecting offshore wind farms to multiple countries

Abstract

Massive deployment of offshore wind is a core building block of the EU’s climate and energy strategy. So-called ‘hybrid assets’ can be used to connect offshore wind to the onshore grid. A hybrid asset is a connection between at least two countries, to which offshore wind farms are also connected. The connection transports offshore-generated electricity to shore, while facilitating electricity trade through additional interconnection capacity. The current EU Electricity Market Regulation is not fit for this purpose, holding back the development of hybrid assets. This article discusses the legal issues regarding hybrid assets, and a promising solution: offshore bidding zones.