Contracting Principles address sustainability of offshore wind

I am pleased to report that our Legal, Contracts, Insurance, and Compliance Committee (LCIC) has recently completed a major piece of work in updating our Renewables Contracting Principles (LCIC 014 Rev 3); and has developed a companion Guidance Document (LCIC 14A) for members highlighting key issues which they need to consider when contracting in the renewables sector. This work has been essential due to market conditions created by the unrealistic expectations of the capital costs and risks of developing offshore wind energy.

Greater flexibility and fairness are needed in contracts by allocating the risk to the party who created it, or is best placed to manage it, and take responsibility for it. 

We recommend that you consider IMCA’s updated contracting principles if you are engaged in the offshore wind energy industry. The attached ‘at a glance’ document is designed as an aid to discussions on the updated principles.

Throughout the year IMCA will continue to engage with key industry stakeholders globally, including relevant government departments, industry bodies and trade associations, offshore clusters, developers, investors, and the insurance market; believing it is imperative they understand the challenges faced by the industry and the need for collaborative solutions to unlock investment opportunities on a sustainable basis.

IMCA LCIC 014 Rev 3 and IMCA LCIC 14A are available on our website to download. We look forward to receiving your comments using the normal feedback link on the inside page of the front cover.

Margaret Fitzgerald
Head of Legal & Regulatory Affairs