The Bureau of Ocean Energy Management (BOEM) recently completed a competitive lease sale for a 122,405-acre wind energy area offshore Kitty Hawk, North Carolina. Avangrid Renewables, LLC submitted the high bid of $9,066,650, making them the provisional winner. Other participants included Wind Future LLC, Statoil Wind US LLC, and wpd offshore Alpha LLC. This marks the nation’s seventh such auction for renewable wind energy in federal waters.
The Department of Justice and the Federal Trade Commission will review the auction before the lease is finalized. The provisional winner must then pay the winning bid and provide financial assurance to BOEM. This successful lease sale signals a growing interest in developing offshore energy resources and contributes to America’s energy independence and economic growth.
The leased area, designated OCS-A 0508, sits approximately 24 nautical miles from shore and extends 25.7 nautical miles in a southeasterly direction. It has the potential to generate 1,486 MW of power, enough to supply electricity to more than 500,000 homes. The actual project size will be determined by the developer. Prior lease sales by BOEM have generated over $58 million in high bids for over one million acres in federal waters.
The lease includes a preliminary one-year term for the lessee to submit a Site Assessment Plan (SAP) outlining plans for assessing wind resources and ocean conditions. Following 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 solicit public input before approving the COP. Upon approval, the lessee has a 25-year term to construct and operate the wind energy project. The recent launch of the Block Island Wind Facility, a 30-megawatt offshore wind farm, demonstrates the viability of this renewable energy source. BOEM’s collaboration with the North Carolina Renewable Energy Task Force since 2010 helped identify the suitable lease area while minimizing environmental impact and conflicts with other uses. This process underscores the importance of balancing energy development with environmental protection.
