Offshore Wind for the Gulf?

Not surprisingly, rising oil prices have renewed interest in alternative Gulf energy, including offshore wind, according to this article from New Orleans City Business(11/13/07). Though waters offshore Louisiana offer huge wind potential, at least one windfarm developer, Harold Schoeffler, moved an offshore wind project to Texas which has a renewables portfolio standard. Louisiana does not and as a result, offshore wind would lead to higher rates and a power sales agreement might not receive approval by the Public Service Commission. In addition, Schoeffler could not reach an interconnection agreement with Louisiana utilities.

Ths story, if true, bears out how much regulatory policy drives the emergence of new technology. Despite Louisiana having a better offshore wind resource, Schoeffler's company chose Texas because of more beneficial government incentives. Likewise, many developers may also turn to siting off the coast of Texas not because of a superior resource, but because Texas has a system in place to grant land leases whereas MMS is still developing regulations for siting projects on the OCS. When it comes to new technologies, I've always thought that it's best to lead with those projects most likely to succeed because of technical merit or an optimal resource. Instead, because of regulatory barriers, by default, we're seeing the emergence of those projects that are the most "site-able." Is this the best way to build the marine renewables industry?