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List of Abbreviations=xvii
Introduction=1
1. Aim and contribution=3
1.1. Relevance=3
1.2. Energy law and other disciplines=5
1.3. Methodology and research choices=7
1.4. Approach=9
2. Introduction networks=10
2.1. Transmission networks=10
2.2. Offshore wind and the offshore grid=12
3. Different options for the connection of offshore wind farms=14
3.1. Option 1 : radial connection of offshore wind farms=15
3.2. Option 2 : clustering of offshore wind farms via offshore hubs=16
3.3. Option 3 : connection of offshore wind farms with two or more countries=17
3.4. Option 4 : connection of offshore wind farms into a meshed offshore grid=18
4. Structure=18
PART I. LEGAL BASES UNDER INTERNATIONAL AND EU LAW
Chapter 1. Rights and Duties under the International Law of the Sea=23
1. Introduction=23
1.1. International law=23
1.2. Concept of jurisdiction=24
1.3. International law of the sea=26
2. Maritime zones=28
2.1. Territorial sea=29
2.2. Continental shelf=30
2.3. Exclusive economic zone (EEZ)=30
2.4. Relationship between continental shelf and EEZ=34
3. Legal implications of international law for the different options=35
3.1. Option 1 : radial connection=35
3.1.1. Jurisdiction and rights of a coastal state to lay cables in its own territorial sea=36
3.1.2. Jurisdiction and rights of a coastal state to lay cables in its own EEZ=36
3.2. Option 2 : clustering of offshore wind farms via offshore hubs=41
3.3. Option 3 : connection of offshore wind farms with two or more countries=43
3.3.1. State's right to lay cables in another state's EEZ and territorial sea=44
3.3.1.1. State's right to lay cables in another state's EEZ=44
3.3.1.2. Right to lay cables in another state's territorial sea=46
3.3.2. Coastal state's right to regulate transit cables in its EEZ=47
3.3.2.1. Economic exploitation of the zone=48
3.3.2.2. Laws and regulations adopted by the coastal state=49
3.3.2.3. Reasonable measures=54
3.3.2.4. Interim conclusion=57
3.3.3. Implications for interconnector projects=58
3.3.3.1. Interconnector connecting two onshore grids : transit cable=58
3.3.4.2. Interconnector with subsequently attached wind farm=59
3.4. Option 4 : connection of offshore wind farms into a meshed offshore grid=60
4. Other bases for jurisdiction=61
5. Conclusion=64
Chapter 2. Applicability of EU Law and Competences of the EU=67
1. Introduction=67
2. Territorial scope of EU law : art. 52 TEU=68
2.1. Case C-286/90 Poulsen=70
2.2. Case C-6/04 Habitats=70
2.3. Case C-111/05 Aktiebolaget v Skatteverket=72
2.4. Case C-347/10 Salemink=73
2.5. Interim conclusion=73
3. EU competences=75
3.1. Development of EU competences for the energy sector=76
3.1.1. Development since the EEC Treaty=77
3.1.2. Assessment of the development=81
3.2. Analysis of art. 194 TFEU=82
3.3. Analysis of art. 194 TFEU in context with other relevant competences=88
3.3.1. Art. 114 TFEU : internal market=89
3.3.2. Arts. 170-172 TFEU : trans-European networks (TEN)=89
3.3.3. Arts. 191-193 TFEU : environment=92
3.4. Case law and the possibility of multiple legal bases=94
4. Conclusion=96
PART II. APPLICABLE LEGAL FRAMEWORK FOR OFFSHORE WIND FARMS AND THE RELATED INFRASTRUCTURE
Chapter 3. Applicable Legal Framework under EU Law=101
1. Introduction=101
1.1. EU energy policy objectives=101
1.2. Potential conflicts between the different objectives=106
1.3. Changing approach to electricity networks=108
2. Secondary legislation : current legal framework under EU law=109
2.1. Production of energy : promotion of renewable energy sources=110
2.1.1. The 2020 targets=110
2.1.2. Support schemes=111
2.1.3. Cooperation mechanisms=112
2.1.4. Beneficial treatment of energy from RES=114
2.2. Transport of energy : rules concerning networks=115
2.2.1. Regulatory oversight=117
2.2.2. General tasks of TSOs=118
2.2.3. Unbundling=118
2.2.4. Connection and access to the grid=119
2.2.5. Regulated tariffs=121
2.2.6. The challenge of integrating renewable energy into the grid=121
2.2.7. Interconnection=123
2.2.7.1. Regulated interconnector projects=124
2.2.7.2. Merchant or exempted interconnector projects=125
2.2.8. Cooperation across borders : agencies, network codes and the TYNDP=127
2.2.8.1. ACER=127
2.2.8.2. ENTSO-E=128
2.2.8.3. Network Codes=129
2.2.8.4. Ten-Year Network Development Plan (TYNDP)=130
2.2.9. Interim conclusion=131
2.3. Specific cross-border projects : rules concerning TEN-E=132
2.3.1. Projects of Common Interest (PCIs)=135
2.3.2. The Northern Seas offshore grid as a priority corridor=137
3. Legal implications of secondary EU law for the different options=138
3.1. Option 1 : radial connection of offshore wind farms=139
3.2. Option 2 : clustering of offshore wind farms via offshore hubs=140
3.3. Option 3 : connection of offshore wind farms with two or more countries=140
3.4. Option 4 : connection of offshore wind farms into a meshed offshore grid=142
4. Conclusion=142
Chapter 4. Applicable Legal Framework under National Law=145
1. Introduction=145
2. The Netherlands=146
2.1. Offshore wind farms=147
2.2. Support scheme=151
2.3. Legal classification of park-to-shore cables=152
2.4. Obligations of the TSO=154
2.4.1. Connection of offshore wind farms=155
2.4.2. Connection costs and transmission tariffs=156
2.4.3. Balancing=156
2.4.4. Curtailment and priority access of offshore wind energy=157
2.5. Interconnectors=158
2.6. New legal regime=160
2.6.1. New regime for offshore wind farms=161
2.6.2. New regime for park-to-shore cables=162
2.6.3. Assessment=164
3. Denmark=165
3.1. Offshore wind farms=166
3.2. Support scheme=170
3.3. Obligations of the TSO=171
3.3.1. Connection of offshore wind farms=172
3.3.2. Connection costs and transmission tariffs=173
3.3.3. Balancing=173
3.3.4. Curtailment and priority access=174
3.4. Interconnectors=175
4. Great Britain=176
4.1. Offshore wind farms=177
4.2. Support scheme=181
4.3. Legal classification of park-to-shore cables=182
4.4. Obligations of the TSO=187
4.4.1. Connection of offshore wind farms=188
4.4.2. Connection costs and transmission tariffs=189
4.4.3. Balancing=190
4.4.4. Curtailment and priority access=191
4.5. Interconnectors=191
5. Germany=193
5.1. Offshore wind farms=194
5.2. Support scheme=198
5.3. Obligations of the TSO=199
5.3.1. Connection of offshore wind farms=199
5.3.2. Connection costs and transmission tariffs=203
5.3.3. Balancing=204
5.3.4. Curtailment and priority access=205
5.4. Interconnectors=205
6. Concluding remarks=206
6.1. Permitting of offshore wind energy and allocation of areas=207
6.2. Park-to-shore cables=207
6.3. Promotion of offshore wind energy=208
7. Outlook=209
PART III. IMPLICATIONS OF THE CURRENT LEGAL FRAMEWORKS FOR THE OFFSHORE GRID
Chapter 5. Practical Requirements for and Legal Barriers to the Clustering of Offshore Wind Farms via Offshore Hubs=213
1. Introduction=213
1.1. Benefits of offshore hubs and the clustering of wind farms=214
1.2. Definition offshore hub=216
1.2.1. Applicable definition under EU law=218
1.2.2. Applicable definition under national law=220
1.2.3. Applicable definition for this book=220
2. Required legal framework=221
2.1. Case studies=221
2.1.1. Moray Firth offshore hub=221
2.1.2. BorWin Project=224
2.1.3. Interim conclusion=225
2.2. Practical requirements=225
2.2.1. Coordination of generation and infrastructure : location and timing=226
2.2.2. Coordination of generation and infrastructure : identification and connection obligation=227
2.2.3. Incentivising relevant actors : adequate financing regime=228
3. Analysis of current legal frameworks and potential barriers=230
3.1. Identification of offshore wind areas and timing of projects=230
3.1.1. Location : wind energy areas=230
3.1.2. Timing : tender or 'first come, first served'=232
3.2. Connection obligation=234
3.2.1. Current obligations=234
3.2.2. Assessment=237
3.3. Financing regime=238
3.3.1. Incentives for relevant actors to participate=238
3.3.2. Anticipatory investments=242
3.4. Assessment=243
3.4.1. Dutch legal regime=243
3.4.2. Danish legal regime=244
3.4.3. British legal regime=245
3.4.4. German legal regime=246
4. Conclusion=247
Chapter 6. Practical Requirements for and Possible Legal Barriers to the Connection of Offshore Wind Farms to Two or More Countries=249
1. Introduction=249
1.1. Benefits of hybrid projects=250
1.2. Classification of hybrid projects=252
2. Required legal framework=253
2.1. Case studies=253
2.1.1. Kriegers Flak=254
2.1.2. COBRAcable=257
2.2. Practical requirements=258
2.2.1. Certainty regarding the definitions applicable and different responsibilities=258
2.2.2. Incentives for relevant actors to participate=259
2.2.3. Cross-border support schemes=260
2.2.4. Operational issues=261
2.3. Conclusion=262
3. Analysis of the legal regimes : EU and national=262
3.1. Definitions : hybrid projects=263
3.1.1. Definitions under EU law=263
3.1.2. Applicability of EU law=264
3.1.2.1. Literal interpretation=265
3.1.2.2. Teleological interpretation=266
3.1.2.3. Interim conclusion=271
3.1.3. Definitions under national law=271
3.2. Allocation of responsibilities=277
3.2.1. Different responsibilities for infrastructure and generation=278
3.2.2. Different responsibilities for park-to-shore cables and interconnectors=278
3.3. Incentives for relevant actors to participate=282
3.3.1. Lack of incentives for the entity developing the offshore infrastructure=283
3.3.1.1. Incentivising the party constructing the park-to-shore cables=283
3.3.1.2. Incentivising the party constructing the interconnector=285
3.3.2. Lack of incentives for the offshore wind farm developer=286
3.3.3. National focus of regulatory authorities and cost-benefit allocation=287
3.4. Limited territorial applicability of national support schemes=289
3.4.1. Scope of national support schemes=289
3.4.2. Case C-573/12 Ålands Vindkraft AB v Energimyndigheten=292
3.4.3. Interim conclusion=293
3.5. Operational issues=294
3.5.1. Priority or guaranteed access=295
3.5.2. Rules on the allocation of capacity and European Network Codes=296
3.5.3. Balancing requirements=299
4. Conclusion=299
PART IV. THE LEGAL FRAMEWORK REQUIRED FOR A TRANSNATIONAL OFFSHORE GRID
Chapter 7. Legal Changes Needed at the National Level to Facilitate Clustering of Wind Farms via Offshore Hubs=303
1. Introduction=303
2. Suggested amendments to enable the clustering at the national level=304
2.1. A national Offshore Infrastructure Plan=305
2.1.1. Is such a national Offshore Infrastructure Plan desirable and realistic?=306
2.1.1.1. Relationship with UNCLOS=306
2.1.1.2. Centralised planning and the internal energy market=307
2.1.1.3. Flexibility and regulatory certainty=310
2.1.2. Establishing national Offshore Infrastructure Plans in the North Sea states=311
2.2. A separate legal regime for projects involving the clustering of wind farms=315
2.2.1. One responsible entity constructing the infrastructure : the TSO=316
2.2.1.1. Compatibility with EU competition law=316
2.2.1.2. Adapting the TSO's role in the Netherlands, Denmark and Germany=318
2.2.1.3. Enhancing the TSO's role under the British system=318
2.2.2. Ensuring legal commitment=321
2.2.3. Adequate regulatory regime=322
2.2.3.1. Anticipatory investment and regulatory approval=322
2.2.3.2. Incentivising the wind farm developer=325
3. Conclusion=326
Chapter 8. An Alternative Legal Framework for Regional Projects=327
1. Introduction=327
2. A regional Offshore Infrastructure Plan=328
2.1. Relationship with the internal energy market=328
2.2. Relationship with existing regional planning mechanisms=331
2.2.1. Maritime spatial planning=332
2.2.2. Ten-Year Network Development Plan=335
2.3. Establishing a regional Offshore Infrastructure Plan=339
2.4. Identifying cross-border projects=340
3. Establishing a regional forum=342
3.1. Existing regional initiatives=342
3.2. Establishing more binding forms of cooperation=345
3.2.1. Projects of Common Interest=345
3.2.2. Enhanced cooperation=348
3.2.3. Interim conclusion=351
3.3. Concluding a regional agreement=352
3.3.1. Relationship with UNCLOS=354
3.3.2. Relationship with EU law=355
3.3.2.1. Art. 2(2) TFEU : the principle of pre-emption=355
3.3.2.2. The primacy of EU law=356
3.3.2.3. Art. 5(3) TEU : the principle of subsidiarity=357
3.3.2.4. Interim conclusion=358
3.3.3. Scope of the regional agreement=359
4. An alternative legal regime for hybrid projects=360
4.1. An alternative legal regime for hybrid projects at the national level=361
4.1.1. Certainty regarding definitions and responsibilities=361
4.1.1.1. Certainty regarding the applicable definitions=362
4.1.1.2. Certainty regarding the responsibility for the construction of the infrastructure=363
4.1.2. Incentives for relevant actors to participate : regulation and financing=364
4.1.2.1. Regulatory approval=365
4.1.2.2. Attractive transmission tariffs=365
4.1.2.3. Applicability of support schemes for cross-border projects=367
4.1.3. Operational issues=370
4.1.4. Interim conclusion=370
4.2. An alternative legal regime for hybrid projects at the regional level=371
4.2.1. Exemptions from EU law=371
4.2.2. Regional approach of NRAs=373
4.2.3. Cost-benefit allocation=374
4.2.4. Attractive rate of return or public funding=375
4.2.5. Balancing obligations=377
4.2.6. Common support scheme=378
5. Conclusion=383
Summary and Outlook=385
Bibliography=393
Acknowledgements=413
About the Author=415
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