The Bureau of Ocean Energy Management (BOEM) recently concluded a competitive lease auction for a 122,405-acre offshore wind energy area near Kitty Hawk, North Carolina. Avangrid Renewables, LLC placed the winning bid of $9,066,650, securing the provisional winner status. Other bidders included Wind Future LLC, Statoil Wind US LLC, and wpd offshore Alpha LLC. This auction represents the seventh federal offshore renewable wind energy lease sale in the US.
The Department of Justice and the Federal Trade Commission will review the auction before finalising the lease. The provisional winner will then be required to pay the winning bid and provide financial assurance to BOEM. This successful lease sale highlights the growing interest in offshore energy development and contributes to America’s energy independence and economic growth.
Located approximately 24 nautical miles offshore and extending 25.7 nautical miles southeast, the leased area, designated OCS-A 0508, has the potential to generate 1,486 MW of power, enough to supply electricity to over 500,000 homes. The final project size will be determined by the developer. Previous BOEM lease sales have generated over $58 million in high bids for over one million acres in federal waters.
The lease includes an initial one-year term for the lessee to submit a Site Assessment Plan (SAP) outlining plans for evaluating wind resources and ocean conditions. After SAP approval, the lessee has four and a half years to submit a detailed Construction and Operations Plan (COP) for BOEM’s approval.
BOEM will conduct an environmental review and seek public input before approving the COP. Once approved, the lessee has a 25-year term to construct and operate the wind energy project. The recent launch of the 30-megawatt Block Island Wind Facility demonstrates the viability of offshore wind energy. BOEM’s collaboration with the North Carolina Renewable Energy Task Force since 2010 helped identify the suitable lease area while minimising environmental impact and conflicts with other uses. This process emphasizes the importance of balancing energy development with environmental protection.