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Decommissioning of Offshore Renewable Energy Installations (OREIs)

Sections 105 to 114 of the Energy Act 2004 introduce a decommissioning scheme for offshore wind and marine energy installations. Under the terms of the Act, the Secretary of State may require a person who is responsible for one of these installations to submit (and eventually carry out) a decommissioning programme for the installation.

The decommissioning provisions in the Energy Act 2004 reflect the Government’s view, taking into account our international obligations under UNCLOS and OSPAR, that a person who constructs, extends, operates or uses an installation should be responsible for ensuring that the installation is decommissioned at the end of its useful life, and should be responsible for meeting the costs of decommissioning, the “polluter pays” principle.

By imposing a legal obligation on businesses to prepare and carry out a decommissioning programme, and potentially requiring them to provide financial security, the Government’s view is that the decommissioning scheme in the Energy Act reduces the risk of companies defaulting on their decommissioning liabilities. At the same time, the Government wishes to implement the scheme in such a way that it does not hinder the development of offshore renewable energy installations.

Our approach is to seek decommissioning solutions which are consistent with our international obligations, as well as UK legislation, and which have a proper regard for safety, the environment, other legitimate uses of the sea and economic considerations. We will act in line with the principles of sustainable development. We aim to ensure that interested parties are given clear information on the operation of the decommissioning scheme. We intend that processes for approving decommissioning programmes should be open and transparent, and that decisions should be taken in an efficient manner, placing as little administrative burden as possible on the parties involved.

For further information and details on decommissioning please read a copy of the guidance notes for business issued in December 2006: Decommissioning of Offshore Renewable Energy Installations under the Energy Act 2004.

• Decommissioning of offshore renewable energy installations under the Energy Act 2004 - Guidance notes for industry (261KB)

If you have any questions about the decommissioning of offshore renewable energy installations please email: offshore.renewables@berr.gsi.gov.uk