The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Third US Offshore Wind Lease Auction Goes to Italy-based US Wind

The U.S. Bureau of Ocean Energy Management (BOEM) held its third auction of offshore wind leases yesterday, this time for prime U.S. federal waters off the coast of Maryland. Italian renewable energy company US Wind Inc. won the 80,000-acre parcel with an $8.7 million bid, well above previous auctions.

The area of interest was separated into two parcels, a North and South lease area located about 10 miles off the coast of Ocean City, Maryland. If fully developed, this land has the potential to support up to 1,450 MW of offshore wind capacity.

Sixteen companies expressed interest in the area and were qualified to compete, including familiar names from the previous two offshore auctions: Fishermen’s, Iberdrola, Sea Breeze, Orisol, Apex, Energy Management, SCS Maryland Energy, EDF, Dominion, Convalt, Bluewater Wind Maryland, Green Sail, Maryland Offshore Wind, RES America Developments, Seawind, and US Wind. Out of the sixteen, only three companies — US Wind, Green Sail and SCS Maryland — participated in a 19-round bidding process.  

Last year, BOEM held two offshore wind auctions. Deepwater Wind won the first auction for two parcels off the coasts of Massachusetts and Rhode Island with a $3.8 million bid. The 164,000-acre area holds an estimated 3.6 GW of potential. Dominion Virginia Power won the second auction for land 23 miles off the Virginia coast with a $1.6 million bid, which amounts to 2 GW of potential on 112,000 acres. BOEM also has a hand in facilitating the 454-MW Cape Wind project, which will likely be the first U.S. offshore wind farm, and the 30-MW Block Island Wind Farm, which is following close behind. Hoping to capitalize on these developments, the city of New Bedford, Massachusetts is constructing an offshore wind port to facilitate the construction and transportation of materials for the U.S. Atlantic coast.

In addition to federal support, Maryland Governor Martin O’Malley has promised a $1.7 billion, 20-year taxpayer subsidy for a 210-MW offshore wind farm at the site, the first subsidy created for a lease site. Once the project is commissioned, household electric rates will increase up to $1.50 per month and businesses will see a 1.5 percent monthly surcharge. The bill was signed into law after several years of debate, and coincides with Maryland’s renewable portfolio standard (RPS), which calls for 20 percent of its electricity to come from renewables by 2022. O’Malley hopes the law will not only help reduce emissions, but also boost the economy. 

“We need a jobs agenda to match our climate challenge,” said O’Malley in a statement.  “Expanding renewable energy, like we’re doing here, will bring Maryland’s vision for clean energy one step closer to reality and clearly set our State apart on the country’s renewable energy landscape.”

US Wind has one year to send BOEM a site assessment plan, which describes how the company will evaluate wind resources at the site. It then has 4.5 years to submit a construction and operations (COP) plan, followed by an environmental assessment. Once approved, US Wind will have earned a 25-year term of operations.

“[Yesterday’s] results are a major achievement and reflect industry confidence as we strengthen our nation’s foothold in this new energy frontier,” said U.S. Secretary of the Interior Sally Jewell in a statement. “The collaboration and thoughtful planning that went into this lease sale will serve as a model as we continue up and down the coast in our efforts to ensure wind energy is developed in the right way and in the right places.”

BOEM is scheduled to hold additional offshore wind lease auctions off the coasts of Massachusetts and New Jersey within the next year. 

Lead image: Offshore wind via Shutterstock

Untitled Document

RELATED ARTICLES

States Already Seek To Delay Clean Power Plan

Andrew Harris, Bloomberg Fifteen states led by coal-rich West Virginia asked a federal court to stall Obama administration rules intended to c...

Stolen Solar Panels and Sabotage A Challenge for Powering India With Renewable Energy

Anindya Upadhyay, Bloomberg Disappointment spread across Tarun Singh’s face when he saw that parts of his solar power microgrid in eastern India’...

Global Renewable Energy Roundup: China, Kenya, Turkey, India Seeking More Renewables

Bloomberg News Editors China is being encouraged by three industry groups to double the nation’s solar-power goal for 2020 to make up for sh...

With Vast Amounts of Geothermal, Wind and Hydropower, Why No Solar In New Zealand?

James Ellsmoor, Contributor New Zealand has built an international brand on environmentalism and the great outdoors. So it is unsurprising that t...

PRESS RELEASES

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Redesigned HydroWorld.com Video Gallery

Hydropower news and information, and interesting promotional announcements are now avai...

30 days to GRC Annual Meeting & GEA Geothermal Energy Expo

The Geothermal Resources Council (GRC) has announced that it is only 30 days to go to t...

FEATURED BLOGS

Appalachian's Energy Center assists counties with landfill gas to energy projects

Activity supported with Z. Smith Reynolds Foundation funding BOONE—The Appalachian Energy Center at Appalachia...

Discounted Room Rates for Geothermal Event end Friday

Discounted room rates for GRC Annual Meeting & GEA Geothermal Energy Expo end Friday Room rates for this prestigi...

3 Reasons To Follow-Up

It’s very important to begin nurturing your relationship with a customer immediately after the project you sold...

Who are the Solar Early Adopters? - the “Tipping Point” is Looming

We all know why people go solar: investment purposes, immediate savings, environmental concerns, and grid independenc...

FINANCIAL NEWS

As associate editor of RenewableEnergyWorld.com, I coordinate and edit feature stories, contributed articles, news stories, opinion pieces and blogs. I also research and write content for RenewableEnergyWorld.com and REW magazine. I manage REW.com...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

Wind Operator Congress Europe

The UK’s only business-focused O&M event for the European wind...

Distributed Wind Energy Workshop

Description: Distributed wind energy is electricity that is produced for...

COMPANY BLOGS

Clean Energy Patents Maintain High Levels in First Quarter, Solar L...

U.S. patents for Clean Energy technologies from the first quarter of 201...

Koch Professor drops his Koch title, still makes same errors plus s...

The Koch Professor’s title isn’t the only thing that’s...

Fact Check: AWEA represents American wind power

The American Wind Energy Association (AWEA) is proud of its members for ...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS