Institutional Framework for the Development of Offshore Wind Power Projects: Key Aspects for Instrument Choice and Design from an Institutional Economic Perspective

National energy policy plans in Europe intend a large-scale expansion of offshore wind power (OWP) installations. The cost of future generation investments will highly depend on the institutional frameworks for the development of OWP projects.1 The question as to which market design is most suitable for achieving the projected OWP expansion at low costs remains the topic of a controversial debate. This research paper aims at contributing to this debate by presenting a line of arguments based on institutional economic considerations on the fundamental mechanisms of providing electricity generation capacity.