United States to auction Central Atlantic areas for offshore wind

The United States has announced plans to sell lease rights to offshore wind energy in the mid-Atlantic region as part of a push to develop clean energy along America’s coast.

The auction, scheduled for August 14, 2024, could generate up to 6.3GW of renewable energy, according to the Department of the Interior. That’s enough to power about 2.2 million homes.

The lease sale will include two areas: one offshore Delaware and Maryland and the other offshore Virginia. The Delaware/Maryland area comprises 101,443 acres and is located approximately 26 nautical miles from Delaware Bay. The Virginia area comprises 176,505 acres and is located approximately 35 nautical miles from the mouth of Chesapeake Bay.

The Bureau of Ocean Energy Management (BOEM) finalized these areas last year. At the time, it said the areas would potentially support 4 GW to 8 GW of power generation when fully developed.

Since 2020, the U.S. has approved eight major wind projects in federal waters and completed four lease transactions in various coastal areas, including the first-ever sale on the Pacific and Gulf Coasts. The Interior Department plans to complete up to 12 more lease transactions by 2028.

The auction includes bidding credits for companies that commit to investing in workforce training programs or developing domestic supply chains for the offshore wind industry. Provisions also encourage project work agreements and require regular communication with tribes, agencies and fisheries.

Seventeen companies qualified to participate in the August sale.

Last year, the U.S. Department of Energy published its Offshore Wind Strategy, which aims to deploy 30 GW of offshore wind projects by 2030 and attract $12 billion annually in direct private investment.

The strategy aims to reduce costs from USD 73/MWh to USD 51/MWh by 2030, develop a domestic supply chain and ensure the sustainable and equitable deployment of fixed-bottom offshore wind farms.