U.S. Interior Proposes to Offer Areas With 4.5 Gigawatts Potential in First Wind Auction Off California

The Bureau of Ocean Energy Management on May 31 proposed offshore wind lease sales on the Outer Continental Shelf Offshore California. The initiative is in continuation of the agency’s previous 25 active leases in Atlantic Oceans which lie in the region of Massachusetts to North Carolina. This proposed lease sale offer is first of its kind in the Pacific Region. In the parallel world, oil prices have spiked up to 115$ per barrel (West Texas Intermediate crude).

The proposed lease areas include Morro Bay Wind Energy Area and Humboldt Wind Energy Area with a total area of about 373,268 acres. An estimated 4.5 gigawatts energy would be added in the national grid system via this project. These efforts are expected to  aid in emissions reductions, expand  clean energy, and provide supply chain and employment opportunities. The administration has a plan to deploy 30 gigawatts of offshore wind energy by 2030.

In order to attract the public, the agency is giving incentives by providing a 2.5 percent bidding credit to bidders who commit to executing a community benefit agreement with a community or ocean users such as fisheries. The proposal also includes 20 percent bidding credit for those who pledge to provide training in advancement of the personnel who will work for the U.S. offshore wind energy projects.

The proposal opens a 60-day comment period. Comments will be considered in deciding  the final lease  sale notice,  the time and date of the lease sale and the companies qualified for the participation. Those who were not previously qualified for the California lease sale are required to submit all the relevant and mandatory documents to the bureau no later than Aug. 1, 2022.