Biden Administration To Hold Offshore Wind Auction in Central Atlantic

The U.S. Department of the Interior will hold next month an offshore wind lease sale in the Central Atlantic as the Biden Administration continues to pursue advancing renewable energy installations, the Interior said on Friday.

The areas, which will be auctioned on August 14, 2024, by the Bureau of Ocean Energy Management, could generate up to 6.3 gigawatts (GW) of clean, renewable energy and power up to 2.2 million American homes, the administration said.

The Final Sale Notice includes one area offshore the states of Delaware and Maryland, and one area offshore the Commonwealth of Virginia. A total of 17 companies qualified to participate in the August lease sale, the Interior Department said.

“We are excited to announce this sale and underscore our commitment to explore additional areas in the Central Atlantic for potential offshore wind energy development,” BOEM Director Elizabeth Klein said in a statement.

“BOEM will continue to work with all ocean users to ensure offshore wind energy proceeds in an environmentally responsible manner.”  

BOEM has held four offshore wind lease sales so far, including offshore New York, New Jersey, and the Carolinas, and the first-ever sales offshore the Pacific and Gulf of Mexico coasts.   

The Biden Administration has approved the first eight commercial-scale offshore wind energy projects in the U.S. as part of its efforts to boost offshore wind and other forms of renewable energy to make the grid greener and cut emissions. The Administration plans a zero-emission grid by 2035.

Earlier this year, the Interior Department announced a new five-year offshore wind leasing schedule, which includes up to 12 potential offshore wind energy lease sales through 2028.

However, the U.S. offshore wind sector has experienced a difficult year with project costs soaring and plans canceled.

In March, Germany’s biggest utility RWE said that offshore wind development costs are 30% higher in the United States than they are in Europe.

Renewable energy projects and emerging low-carbon technologies are more exposed to the current high-interest rate environment globally, which could slow the pace of transition to clean energy, Wood Mackenzie said in a report in April.

By Charles Kennedy for Oilprice.com

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