Just Half the Leases Sold for Offshore Wind Development in Gulf of Maine

Wind turbines generate electricity at the Block Island Wind Farm near Block Island, R.I., on July 7, 2022. John Moore/Getty Images

The Biden administration held the first offshore wind lease sale in the Gulf of Maine on Oct. 29.

Conducted by the Bureau of Ocean Energy Management (BOEM), the sale resulted in more than $21.9 million in winning bids by two bidders, according to an Oct. 29 statement from the Department of the Interior.

This was the “first commercial sale for floating offshore wind on the Atlantic Coast,” the department stated.

“Today’s lease sale is yet another significant milestone in the Biden–Harris administration’s work to meet the President’s goal of deploying 30 gigawatts of offshore wind energy capacity by 2030 and 15 gigawatts of floating offshore wind energy by 2035,” the statement reads.

In total, eight areas were offered by the administration for lease, out of which buyers bought rights to only half the regions.

Avangrid Renewables, LLC, won two leases, both located about 29.5 nautical miles (nm) from Massachusetts. Invenergy NE Offshore Wind, LLC, won a lease in an area about 46.2 nm from Maine and a second lease in an area some 21.6 nm from Massachusetts.

Combined, the leased areas could power more than 2.3 million homes with “clean energy,” the agency said.

“Since the start of the Biden–Harris administration, we’ve been committed to achieving our ambitious clean energy goals,” Secretary of the Interior Deb Haaland said. “Today’s successful auction marks yet another critical step in our fight against climate change.”

Under the Biden administration, the Department of the Interior has greenlit 10 commercial-scale offshore wind energy projects, approving more than 15 gigawatts of clean energy, which is enough to power more than 5 million homes.

The result of the lease sales is a far cry from the $4.4 billion the Biden administration received at its first offshore wind auction held in 2022 for areas off the coast of New York and New Jersey.

“I was not expecting a repeat of the New York auction, but I’m surprised that this lasted only one round,” Stephen Maldonado, a North American power sector analyst with energy research firm Wood Mackenzie, said at an offshore wind conference in Atlantic City, New Jersey.

“I’m also curious how the timing of the election influenced the thinking of the bidders.”

In a rally in May, former President Donald Trump vowed to take regulatory action against offshore wind power projects.

“[These projects] destroy everything,“ he said. ”They’re horrible and the most expensive energy there is. They ruin the environment. They kill the birds. They kill the whales. We are going to make sure that that ends on day one. I’m going to write it out in an executive order. It’s going to end on day one.”

Supporters of the projects are positive about the outcome of the lease sale.

The nonprofit Oceantic Network, an organization that supports businesses engaged in offshore wind projects, stated that the result of the recent lease auction is an indication that offshore wind power will play a “leading role” in the energy future of the Northeast.

“These lease areas will deliver well-paying, local jobs and drive significant investment in manufacturing facilities, ports, and transmission development,” said Liz Burdock, CEO of the group.

“Despite the general uncertainty around the upcoming presidential election, this is a vote of confidence for an American industry that has already received nearly $3 billion of new supply chain investment in the first nine months of 2024.”

Before the lease auction, Jerry Leeman, CEO of the New England Fishermen’s Stewardship Association, criticized the sale, accusing the government of putting the lives of fishermen and coastal communities “up on the auction block.”

The leased areas cover “prime, multi-generational fishing grounds” that will potentially be shut down forever for fishing activities, thus jeopardizing fishermen’s ability to make a living, he said.

“Moreover, as we have previously explained, the six development sites in the southern gulf will effectively block safe access to much of Georges Bank,” he said.

Georges Bank is a large elevated area of the sea floor that separates the Gulf of Maine from the Atlantic Ocean.

The Responsible Offshore Development Alliance also raised concerns about the lease, noting that “little has been done” to resolve the environmental and economic uncertainties posed by offshore wind projects.

Reuters contributed to the report.