U.S. Interior Announces Wind Energy Auction Offshore the Carolinas

The Interior Department’s Bureau of Ocean Energy Management on March 25 announced it will hold an offshore wind energy auction in May for two lease areas offshore the Carolinas. The agency reduced overall acreage available by 14 percent to avoid conflicts with ocean users and minimize environmental impacts.

The agency made the announcement after finalizing a supplemental environmental review that concluded there would be no significant impacts from turbine installation in the Carolina Long Bay lease areas, which total some 110,091 acres and are assessed as capable of supporting at least 1.3 gigawatts of offshore wind energy, which could produce enough electricity supply for nearly 500,000 homes.

The auction will allow offshore wind developers to bid on one or both lease zones within the Wilmington East Wind Energy Area, with the two lease areas including similar acreage, distance to shore, and wind resource potential. Notably, the final sale notice includes a 20 percent credit for bidders that propose direct investment in either U.S. offshore wind supply chain or workforce development programs.

Approximately 17,774 acres were removed from the lease areas in response to concerns raised by coastal communities, the Coast Guard, and others, forcing the elimination of all blocks within 20 miles of shore. Some 13,474 acres were removed in the northern portion of the proposed lease areas, apparently as a concession to the Carolinas’ robust beach tourism industry. Some 4,300 acres were eliminated from the southeast portion of the lease area to avoid potential interference with frequently used Coast Guard navigational channels.

The agency said it expects more lease sales to follow, including for areas off California and Oregon, as well as off the Atlantic coast and the Gulf of Mexico. The agency’s most recent offshore wind auction, held last month, took in a record $4.37 billion in winning bids, with five project developers provisionally securing six leases off the coasts of New York and New Jersey.

The national offshore wind energy auction is a step forward towards the goal reinforced by the 2021 Infrastructure Investment and Jobs Act to develop clean energy, resilient infrastructure, and robust domestic manufacturing and supply chains.

According to an October 2021 report by The Special Initiative on Offshore Wind, the growing U.S. offshore wind energy industry presents a $109 billion revenue opportunity to businesses in the supply chain over the next decade.

The wind energy auction for two lease areas offshore the Carolinas is scheduled for May 11.