The federal government will auction two lease areas along the Central Atlantic coast for wind energy projects with a potential of up to 6.3 GW of emissions-free power generation.
The June 28 announcement by the Bureau of Ocean Energy Management had been expected, and the prospect has drawn interest — 17 companies have been qualified to participate in the Aug. 14 auction.
This auction is the first in a series of a dozen offshore wind lease sales tentatively scheduled by BOEM through the end of 2028. Next up are a Gulf of Mexico wind energy auction targeted for September and auctions in the Gulf of Maine and off the coast of Oregon targeted for October.
BOEM’s Central Atlantic region — from Delaware to North Carolina — includes the largest U.S. wind farm announced to date: Dominion’s 2.6-GW Coastal Virginia Offshore Wind, now under construction.
But planning for additional development has run into conflict due to concerns that massive wind turbines would be incompatible with military and NASA operations in the area.
BOEM announced eight possible wind areas totaling 1.7 million acres in November 2022. That was winnowed down to three, two of which will be offered in this auction: A-2 (101,433 acres off the mouth of Delaware Bay) and C-1 (176,505 areas off the mouth of Chesapeake Bay).
The third, Area B-1 (78,285 acres off Ocean City, the only one of the three off the Maryland coast), may be offered in a future auction.
This has limited the options for Maryland as it tries to reach its goal of 8.5 GW of offshore wind installed by 2031.
The state lost Skipjack Wind from its portfolio in January, after Ørsted decided it would not proceed to construction under the existing offtake agreement. In May, the state allowed the one offshore wind developer still under contract, US Wind, to seek increased compensation for its projects.
In December, after it concluded it could not offer B-1 at auction, BOEM committed to helping Maryland reach its goals. The two formalized that agreement with a memorandum of understanding June 7.
Trade group Oceantic Network welcomed the June 28 auction announcement but said additional seabed acreage for offshore wind development is critical for the region and for Maryland in particular: “We encourage BOEM and Maryland to continue their work in identifying new areas to help meet regional targets,” CEO Liz Burdock said in a prepared statement.
The Central Atlantic auction announcement comes amid a regulatory transition for BOEM: Its new Renewable Energy Modernization Rule will take effect July 15, by which time the terms of the auction already will have been set.
Before the Central Atlantic auction takes place, details such as timing of lease terms and formulas for calculating operating fees will be revised according to the new rule.
