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New York Bight offshore wind auction enters second day with bids totaling $1.5 billion

On Wednesday, Feb. 23, the U.S. Bureau of Ocean Energy Management (BOEM) will hold an offshore wind energy lease auction for 480,000 acres in the New York Bight area off New York and New Jersey.

The New York Bight offshore wind lease auction is already the most successful in U.S. history.

And it isn’t over.

After one day and 21 rounds of live bidding, the combined price set for the six areas off New York and New Jersey is $1.53 billion.

The current price for OCS-A 0539 (purple in the graphic below) is set at $410 million with five bidders still involved at the end of the first day. That tops the previous U.S. record for an individual offshore wind lease sale ($135.1 million) and overall lease auction ($405 million) that was set in 2018 for three areas off Massachusetts.

You can find results from the first 21 rounds of bidding here.

The auction will resume with round 22 at 9 a.m. ET on Feb. 24. Follow this story throughout the day for the results.

Courtesy: BOEM

How does the offshore wind lease auction work?

Heading into the New York Bight lease auction, the Bureau of Ocean Energy Management (BOEM) identified 25 pre-qualified bidders. The list includes Avangrid Renewables, BP US Offshore Wind Energy, US Wind, and EDF Renewables. A notable player in the global offshore wind industry, Ørsted, is not listed, though auction rules allow companies to bid through affiliated partners.

As long as there are two or more live bids (including bids carried forward) for at least one of the Lease Areas, the auction moves to the next round. In order to participate in the next round of the auction, a bidder must have submitted a live bid for one of the lease areas in the previous round or BOEM must have carried over a bidder’s bid from a previous round.

BOEM will raise the asking price for each of the Lease Areas that has received two or more live bids in the previous round.

A bidder may switch its live bid from one Lease Area to another between rounds only if its bid from the previous round was contested.

BOEM will announce the provisional winning bidders soon after the end of the auction.


Join us on April 13th for the next edition of the Renewable +Series on offshore windDevelopers, advocates, and policymakers will discuss the future of offshore wind energy along the Pacific CoastRegister here.


What is New York Bight?

The New York Bight offshore wind lease auction is made up of 480,000 acres off the coasts of New York and New Jersey, which has been divided into six lease areas. New York Bight is the first offshore wind lease auction under the Biden administration and is the largest in U.S. history.

The expected installed capacity for the lease auction represented a combined 5.6 GW to 7 GW, enough to power 2 million homes. 

Secretary of the Interior Deb Haaland called the New York Bight offshore wind lease auction “an inflection point for domestic offshore wind energy development.”

Author

  • John Engel is the Content Director for Renewable Energy World. For the past decade, John has worked as a journalist across various mediums — print, digital, radio, and television — covering sports, news, and politics. He lives in Asheville, North Carolina with his wife, Malia.

    Have a story idea or a pitch for Renewable Energy World? Email John at john.engel@clarionevents.com.

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