Offshore Wind in the Great Lakes: Fostering Development Through State Policy

Abstract

This paper proposes a new regulatory scheme for offshore wind in the Great Lakes. Building on the work of the Great Lakes Offshore Wind Council, it exams past experiences with offshore wind development on the East Coast and in the Great Lakes. Drawing lessons from those experiences, it proposes a leasing scheme for the state of Michigan with three components. First is site screening and review. Second is a periodic lease auction held by the Michigan Department of Energy, Great Lakes, and the Environment. And third is annual lease payments of $100 to $200 per acre. The paper also proposes incorporating offshore wind renewable energy credits (ORECs) into Michigan's existing Renewable Portfolio Standard law, and creating a thorough community engagement process to continue for the duration of development.