Abstract
Energy law scholars and economists have long studied the theoretical differences between vertically-integrated and deregulated models of electricity regulation. Now, diverse regulatory approaches and advances in renewable electricity technology present the opportunity to go beyond the abstract. This case study applies tenets of energy law and economic theory to offshore wind initiatives to concretize lessons of a clean energy transition for state policymakers going forward.
By comparing Virginia’s and New York’s offshore wind ventures, this analysis lends nuance and practicality to otherwise abstract energy regulation principles. These states are leaders in the volatile offshore wind industry, a target for the second Trump administration. Their projects pursue similar goals by similar means; however, while Virginia has embraced a traditional monopolistic system of electricity regulation, New York has turned towards competition. This comparison identifies the tradeoffs between these two regulatory models as applied to high-risk, high-capital technologies like offshore wind—which may be critical tools for decarbonization. It urges state policymakers to examine the costs and benefits of these models and to align their energy goals with the appropriate regulatory model for best results.
The federal government’s hostility towards renewable energy transition and offshore wind in particular leaves states in a newfound position of opportunity and responsibility. The present administration has created an incredibly challenging environment for clean energy innovation and transition, yet the importance of accelerating energy transition is as apparent as it has ever been. Thus, it is more critical than ever that state policymakers capitalize on existing lessons of energy transition, rather than repeating past mistakes.
Citation
Caroline Daniel,
Offshore Wind in Vertically-Integrated Versus Deregulated Models: Considerations for State Policymakers,
36 Duke Environmental Law & Policy Forum
47-78
(Fall 2026)
Available at: https://scholarship.law.duke.edu/delpf/vol36/iss1/2