By Frank Brill, EnviroPolitics Editor
In a significant step forward for renewable energy in New England, the U.S. Department of Interior has concluded its first-ever wind energy lease sale in the Gulf of Maine, though with more modest results than some previous auctions. Two energy companies secured rights to develop floating offshore wind turbines across four parcels, with combined bids totaling approximately $22 million.
The Winners and Their Investments
The provisional buyers are Avangrid Renewables, which purchased two lease areas totaling 223,462 acres for around $11.2 million, and Invenergy NE Offshore Wind, which purchased two lease areas totaling 215,634 acres for around $10.7 million. Invenergy already holds leases off California and New Jersey.
A More Modest Outcome
While the auction represents a crucial milestone in the Biden administration’s ambitious clean energy goals, the results were notably more subdued compared to recent wind energy auctions. For context, developers bid $4.37 billion for six lease areas off New York in early 2022 and $757 million for five parcels in California later that same year. Only half of the available parcels in the Gulf of Maine auction received bids, with prices hovering around the government’s baseline of $50 per acre.
Despite the relatively modest bidding, industry experts and environmental advocates remain optimistic. Kate Sinding Daly from the Conservation Law Foundation noted that while high inflation and economic challenges have impacted the offshore wind industry, the sale demonstrates continued developer interest in the Gulf of Maine’s massive energy potential.
Maine’s Strategic Position
The Gulf of Maine presents unique challenges and opportunities for wind power development. Unlike other regions, its deep waters require floating turbines rather than bottom-mounted installations. Maine is positioning itself as a potential hub for this emerging technology, with the University of Maine developing specialized floating turbine technology alongside industry partners.
“Responsibly developed offshore wind will make us more energy independent, reduce harmful air pollution, and deliver good-paying jobs, all while protecting ocean wildlife and avoiding key fishing grounds,” said Jack Shapiro, climate and clean energy director at the Natural Resources Council of Maine.
Looking Ahead
The lease sales represent only the initial step in a longer process. As Interior Secretary Deb Haaland emphasized, these leases grant companies the right to submit project plans for federal review but do not yet authorize construction. According to the Bureau of Ocean Energy Management, the newly-leased areas could potentially power more than 2.3 million American homes.
The development includes important stipulations requiring companies to:
- Make every reasonable effort to enter into labor union agreements for construction
- Develop communication plans with Native American tribes
- Engage with local agencies and fisheries
- Protect marine resources and fishing interests
Related Maine offshore wind news stories:
Avangrid, Invenergy subsidiaries secure BOEM’s first-ever Gulf of Maine offshore wind leases
US Gulf of Maine offshore wind auction attracts scant interest
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