Carolina Long Bay offshore Wind Auction Draws $315 Million in Winning Bids

The U.S. Department of the Interior’s wind energy auction in the Carolina Long Bay area, the second major offshore wind lease sale this year, drew competitive winning bids from two companies totaling $315 million, according to a May 11 press release. The sale offered two lease areas covering 110,091 acres in the Carolina Long Bay area offshore North Carolina and South Carolina. If fully developed, the leases could result in about 1.3 gigawatts of offshore wind energy, enough to power about 500,000 homes. The New York Bight offshore wind auction conducted in February, the first to be held under the Biden administration, drew a record $4.37 billion in winning bids.

For the Carolina Long Bay auction, the agency reduced overall acreage available by 14 percent in the final sale notice from the size it initially proposed, in order to avoid conflicts with ocean users and minimize environmental impacts. The auction included a new 20 percent credit for bidders that committed to a monetary contribution to programs or initiatives that support workforce training programs for the offshore wind industry, development of a U.S. domestic supply chain for the offshore wind energy industry, or both. This credit will result in $42 million for these critical programs or initiatives.

The U.S. offshore wind industry is picking up pace driven by federal support and state commitments. Earlier this month, the Bureau of Ocean Energy Management completed an environmental review of the potential impacts from future commercial leasing within the Humboldt Wind Energy Area off the state’s northern coast. The 206-square-miles area, if developed, could generate up to 1.6 gigawatts of renewable energy. The agency has also published calls for information and nominations for possible leasing in areas that are determined to be suitable off the coast of Oregon and in the Central Atlantic.