U.S. ocean energy regulators have extended a deadline for public comment on a proposed path forward for offshore renewable energy leasing on the Atlantic Outer Continental Shelf. The Bureau of Ocean Energy Management's "Proposed Path Forward for Future Offshore Renewable Energy Leasing on the Atlantic Outer Continental Shelf" lists factors the agency proposes to consider in identifying areas for possible future offshore wind leasing.
BOEM is an agency of the Department of the Interior, charged with advancing the responsible
development of offshore energy and marine mineral resources covering
over 1.7 billion acres of the Outer Continental Shelf. As of May 2018, BOEM has held seven competitive lease sales, yielding over
$68 million in high bids for almost 1.4 million acres in federal
waters. BOEM now has 13 offshore wind energy leases, capable of supporting 17 gigawatts of generating capacity, covering every state from
Massachusetts to North Carolina (Cape Cod to Cape Hatteras).
On April 6, 2018, BOEM published a Request for Feedback in the Federal Register, presenting the agency's "Proposed Path Forward for Future Offshore Renewable Energy Leasing on the Atlantic Outer Continental Shelf." In that notice, the agency said it is conducting a high-level assessment of all waters offshore the United
States Atlantic Coast for potential future offshore wind lease
locations, and proposes to rely on specific factors to help it assess which geographic areas along the Atlantic are the most
likely to have highest potential for successful offshore wind
development in the next three to five years.
BOEM said its intent in publishing the Notice was "to start a conversation
surrounding its approach to future
renewable energy leasing on the
Atlantic OCS." Its proposed factors for identifying offshore wind forecast areas include exclusionary factors (which create "no-go" areas for offshore wind) and positive factors (increasing the likelihood that location would fall within a forecast area). Under BOEM's proposal, exclusionary factors would include areas prohibited by the Outer Continental Shelf Lands Act for leasing, Department of Defense conflict areas, and charted marine vessel traffic routes. Positive factors for an areas include that it has not previously been removed, is greater than 10 nautical miles from shore, is shallower than 60 meters in depth, is adjacent to states with offshore wind economic incentives or with an interest in identifying additional lease areas, or where industry has expressed interest.
Comments on BOEM's proposed path
forward for offshore renewable energy leasing on the Atlantic were slated to be due on May 21, but on May 18, 2018, the Bureau of Ocean Energy Management announced that it would accept comments through July 5, 2018.
BOEM says this "Atlantic assessment is intended to inform future area identification processes, not replace them" -- so after reviewing comments it receives, BOEM will coordinate with its intergovernmental renewable energy task forces and conduct additional stakeholder outreach.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
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Showing posts with label site. Show all posts
NY offshore wind leasing advances
Tuesday, June 14, 2016
The U.S. Bureau of Ocean Energy Management is moving closer to leasing ocean sites offshore New York for commercial offshore wind development.
On June 2, 2016, the Department of the Interior and BOEM announced the proposed lease sale for 81,130 acres offshore New York for commercial wind energy leasing. The area available for leasing includes a Wind Energy Area designated by BOEM earlier this year. Roughly triangular, the WEA starts about 11 nautical miles offshore Long Beach, and runs about 26 nautical miles southeast.
Under BOEM's leasing procedures, the agency published a “Proposed Sale Notice (PSN) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore New York” in the Federal Register on June 6, 2016. The PSN includes a 60-day public comment period ending on August 5, 2016.
Any companies wishing to participate in the lease sale must also submit a qualification package by that date, demonstrating legal, technical, and financial qualification to participate. To date, seven companies have qualified to participate in a future auction for the New York Wind Energy Area.
As required by federal environmental law, BOEM also published an Environmental Assessment (EA) considering potential impacts associated with issuing a lease, associated surveys, and approving the installation of resource assessment facilities in the area. The EA is available for public comment for 30 days.
BOEM has scheduled a public seminar Wednesday, June 29, 2016 in New York City to describe the auction format, explain the auction rules, and demonstrate the auction process through meaningful examples. Other public meetings will focus on the agency's planning and leasing efforts regarding New York offshore wind energy activities, as well as the EA.
So far, BOEM has awarded 11 commercial offshore wind leases, generating approximately $16 million in winning bids for over 1,000,000 acres in federal waters. Previous competitive lease sales have resulted in 9 leases: two offshore New Jersey, two in an area offshore Rhode Island-Massachusetts, another two offshore Massachusetts, two offshore Maryland and one offshore Virginia.
On June 2, 2016, the Department of the Interior and BOEM announced the proposed lease sale for 81,130 acres offshore New York for commercial wind energy leasing. The area available for leasing includes a Wind Energy Area designated by BOEM earlier this year. Roughly triangular, the WEA starts about 11 nautical miles offshore Long Beach, and runs about 26 nautical miles southeast.
Under BOEM's leasing procedures, the agency published a “Proposed Sale Notice (PSN) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore New York” in the Federal Register on June 6, 2016. The PSN includes a 60-day public comment period ending on August 5, 2016.
Any companies wishing to participate in the lease sale must also submit a qualification package by that date, demonstrating legal, technical, and financial qualification to participate. To date, seven companies have qualified to participate in a future auction for the New York Wind Energy Area.
As required by federal environmental law, BOEM also published an Environmental Assessment (EA) considering potential impacts associated with issuing a lease, associated surveys, and approving the installation of resource assessment facilities in the area. The EA is available for public comment for 30 days.
BOEM has scheduled a public seminar Wednesday, June 29, 2016 in New York City to describe the auction format, explain the auction rules, and demonstrate the auction process through meaningful examples. Other public meetings will focus on the agency's planning and leasing efforts regarding New York offshore wind energy activities, as well as the EA.
So far, BOEM has awarded 11 commercial offshore wind leases, generating approximately $16 million in winning bids for over 1,000,000 acres in federal waters. Previous competitive lease sales have resulted in 9 leases: two offshore New Jersey, two in an area offshore Rhode Island-Massachusetts, another two offshore Massachusetts, two offshore Maryland and one offshore Virginia.
California floating offshore wind project proposed
Friday, April 1, 2016
The U.S. Bureau of Ocean Energy Management is moving toward the prospect of leasing sites for commercial wind energy
development in federal waters offshore California. According to a March 21 release by BOEM, a January 2016 request by Trident Winds, LLC for a lease will now trigger further steps in BOEM's leasing process.
Trident Winds filed its unsolicited lease request on January 14, 2016. That request proposed a project to be located about 33 nautical miles northwest of Morro Bay. The lease area proposed covers almost 68,000 acres in water depths of 2,600‐3,300 feet. The project would generate up to 800 megawatts of power using about 100 floating foundations, each supporting a turbine that could produce up to 8 MW. The project could be expanded to generate 1,000 megawatts at a later date, if additional transmission capacity and market off-take can be obtained.
On March 21, 2016, BOEM confirmed that Trident Winds is legally, technically, and financially qualified to hold an offshore wind energy lease in federal waters.
Under the agency's leasing process, its next step will be to publish a notice in the Federal Register to determine if there is competitive interest in the area requested. That Notice will also solicit comments and information on site conditions, commercial, military or other uses of the area and potential impacts of the proposed Trident Winds project. BOEM expects to issue that Notice this summer.
Based on the information and expressions of interest received during the comment period on the Notice, BOEM will determine whether there is competitive interest in the area. If BOEM determines there is competitive interest, it will initiate its competitive leasing process. If no expressions of interest are received, BOEM will proceed with its noncompetitive leasing process.
So far, BOEM has awarded eleven commercial wind energy leases in federal waters off the Atlantic coast, nine of which were issued as a result of competitive lease sales.
Trident Winds filed its unsolicited lease request on January 14, 2016. That request proposed a project to be located about 33 nautical miles northwest of Morro Bay. The lease area proposed covers almost 68,000 acres in water depths of 2,600‐3,300 feet. The project would generate up to 800 megawatts of power using about 100 floating foundations, each supporting a turbine that could produce up to 8 MW. The project could be expanded to generate 1,000 megawatts at a later date, if additional transmission capacity and market off-take can be obtained.
On March 21, 2016, BOEM confirmed that Trident Winds is legally, technically, and financially qualified to hold an offshore wind energy lease in federal waters.
Under the agency's leasing process, its next step will be to publish a notice in the Federal Register to determine if there is competitive interest in the area requested. That Notice will also solicit comments and information on site conditions, commercial, military or other uses of the area and potential impacts of the proposed Trident Winds project. BOEM expects to issue that Notice this summer.
Based on the information and expressions of interest received during the comment period on the Notice, BOEM will determine whether there is competitive interest in the area. If BOEM determines there is competitive interest, it will initiate its competitive leasing process. If no expressions of interest are received, BOEM will proceed with its noncompetitive leasing process.
So far, BOEM has awarded eleven commercial wind energy leases in federal waters off the Atlantic coast, nine of which were issued as a result of competitive lease sales.
NY offshore wind zone announced
Thursday, March 24, 2016
U.S. ocean energy regulators are advancing plans to lease sites off New York for potential commercial wind energy development. The federal Bureau of Ocean Energy Management's designation of a Wind Energy Area could ultimately lead to the development of one or more offshore wind energy projects off Long Island.
While the U.S. still is not home to any operating commercial offshore wind projects, BOEM has issued 11 commercial wind energy leases off the Atlantic coast. Leases awarded include two offshore New Jersey, two offshore Rhode Island-Massachusetts, another three offshore Massachusetts, one offshore Delaware, two offshore Maryland and one offshore Virginia.
In 2011, the New York Power Authority (NYPA) applied to BOEM for a commercial wind lease. At that time, the public power authority proposed installing up to 194 wind turbines, each generating 3.6 megawatts, for a total project capacity of nearly 700 megawatts.
In January 2013, BOEM issued a Request for Interest to assess whether any other entities were parties interested in developing commercial wind facilities in the same area. BOEM's review of the nominations of interest it received in response, including indications of interest from Fishermen’s Energy, LLC and Energy Management, Inc., led the agency to determine that there was competitive interest in the area. As a result, BOEM initiated its competitive leasing process.
In 2014, BOEM published in the Federal Register a Call for Information and Nominations and a Notice of Intent to Prepare an Environmental Assessment, and has held stakeholder meetings.
The process took a step forward on March 16, 2016, when BOEM announced that it had completed the Area Identification process to delineate a Wind Energy Area (WEA) offshore New York. The wedge-shaped area covers approximately 127 square miles (81,130 acres, or 32,832 hectares), beginning about 11 nautical miles south of Long Beach, and extending about 26 nautical miles southeast along its longest portion.
Next steps in the offshore wind leasing process might include BOEM's publication of a Proposed Sale Notice for public comment, along with environmental assessment (EA) and agency consultations, followed by publication of a Final Sale Notice that announces the date, time, and specific conditions of the auction. According to BOEM, its environmental review is expected to be completed later this year.
While the U.S. still is not home to any operating commercial offshore wind projects, BOEM has issued 11 commercial wind energy leases off the Atlantic coast. Leases awarded include two offshore New Jersey, two offshore Rhode Island-Massachusetts, another three offshore Massachusetts, one offshore Delaware, two offshore Maryland and one offshore Virginia.
In 2011, the New York Power Authority (NYPA) applied to BOEM for a commercial wind lease. At that time, the public power authority proposed installing up to 194 wind turbines, each generating 3.6 megawatts, for a total project capacity of nearly 700 megawatts.
In January 2013, BOEM issued a Request for Interest to assess whether any other entities were parties interested in developing commercial wind facilities in the same area. BOEM's review of the nominations of interest it received in response, including indications of interest from Fishermen’s Energy, LLC and Energy Management, Inc., led the agency to determine that there was competitive interest in the area. As a result, BOEM initiated its competitive leasing process.
In 2014, BOEM published in the Federal Register a Call for Information and Nominations and a Notice of Intent to Prepare an Environmental Assessment, and has held stakeholder meetings.
The process took a step forward on March 16, 2016, when BOEM announced that it had completed the Area Identification process to delineate a Wind Energy Area (WEA) offshore New York. The wedge-shaped area covers approximately 127 square miles (81,130 acres, or 32,832 hectares), beginning about 11 nautical miles south of Long Beach, and extending about 26 nautical miles southeast along its longest portion.
Next steps in the offshore wind leasing process might include BOEM's publication of a Proposed Sale Notice for public comment, along with environmental assessment (EA) and agency consultations, followed by publication of a Final Sale Notice that announces the date, time, and specific conditions of the auction. According to BOEM, its environmental review is expected to be completed later this year.
North Carolina offshore wind environmental assessment
Tuesday, February 17, 2015
The U.S. Department of the Interior's Bureau of Ocean Energy Management has released an environmental assessment of the impacts of leasing sites off the North Carolina coast for offshore wind projects. This milestone supports the Obama administration's plan to offer site leases on the outer continental shelf for renewable energy projects.
Since 2012, BOEM has solicited public comment on the prospect of leasing about 307,590 acres off North Carolina for potential offshore wind development. BOEM has identified three Wind Energy Areas offshore North Carolina:
On January 22, 2015, BOEM announced the availability of an environmental assessment for public review and comment. Under the National Environmental Policy Act or NEPA, an environmental assessment or EA considers the potential impacts of proposed federal action and analyzes
reasonable alternatives to the proposed
action. In this case, the action proposed is BOEM's issuance of commercial wind leases and allowing of site characterization and assessment activities on
the Atlantic Outer Continental Shelf
offshore North Carolina.
BOEM's environmental assessment for North Carolina offshore wind leasing provides the framework for potential federal lease auctions for North Carolina offshore wind sites. The environmental assessment is available for public comment through February 23, 2015.
Since 2012, BOEM has solicited public comment on the prospect of leasing about 307,590 acres off North Carolina for potential offshore wind development. BOEM has identified three Wind Energy Areas offshore North Carolina:
- the Kitty Hawk Wind Energy Area (about 122,405 acres), beginning about 24 nautical miles (nm) from shore and extends approximately 25.7 nm in a general southeast direction;
- the Wilmington West Wind Energy Area (about 51,595 acres), beginning about 10 nm from shore and extends approximately 12.3 nm in an east-west direction at its widest point; and
- the Wilmington East Wind Energy Area (about 133,590 acres), beginning about 15 nm from Bald Head Island at its closest point and extends approximately 18 nm in the southeast direction at its widest point.
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| BOEM's map of North Carolina Wind Energy Areas. |
BOEM's environmental assessment for North Carolina offshore wind leasing provides the framework for potential federal lease auctions for North Carolina offshore wind sites. The environmental assessment is available for public comment through February 23, 2015.
Virginia offshore wind site leases to be auctioned
Thursday, August 8, 2013
Next month the United States will auction off the rights to develop offshore wind energy projects off the Virginia coast. The Virginia auction's results will shape the development of offshore wind in North America, as it will represent the nation's second competitive lease auction for commercial offshore wind projects.
As part of the Obama administration's efforts to promote the use of federal lands for the generation of renewable electricity, the federal Bureau of Ocean Energy Management is holding a series of auctions of the rights to lease sites in federal waters over the outer continental shelf. On July 31, BOEM held an auction for sites off Massachusetts and Rhode Island. In that auction, Deepwater Wind New England, LLC submitted the winning bid of about $3.8 million for the rights to lease two parcels covering 164,750 acres offshore New England.
BOEM will hold its second competitive lease auction on September 4 for sites off Virginia. The Virginia auction will be for a single lease for a designated wind energy area covering about 112,799 acres. The western edge of the lease area is located about 23.5 nautical miles off the Virginia Beach coastline. If fully developed, BOEM expects the Virginia lease area to support more than 2,000 megawatts of wind generation.
BOEM's current offshore wind leasing program - known as "Smart from the Start" - features a process reliant on multiple rounds of proposals and calls for public feedback. For Virginia waters, that process began in February 2012 when BOEM published a Call for Information and Nominations in the Federal Register. The Call was designed to evaluate competitive interest for the area, as well as to seek public feedback on existing uses and other considerations relevant to leasing the sea space. Simultaneously, BOEM published a Notice of Availability for the final Environmental Assessment and Finding of No Significant for commercial wind lease issuance and site assessment activities on the Atlantic outer continental shelf offshore New Jersey, Delaware, Maryland, and Virginia.
BOEM received eight nominations of interest in the lease area in response to the Call. The eight companies responding with interest were:
As with the recent auction for sites off Rhode Island and Massachusetts, some of these companies may not choose to participate in the auction. While BOEM had found nine companies to be legally, technically, and financially qualified to participate in the New England auction, only three actually submitted bids. For example, Fisherman's Energy and Iberdrola Renewables both qualified for the New England auction, but did not bid.
Assuming interest remains in the Virginia sites, the September auction is expected to yield a single winner. That winning bidder will pay the amount specified in the final bid for the right to lease part or all of the Virginia wind energy area. Development of an offshore wind project would then require a series of additional steps, ranging from financing to permitting to interconnection with the mainland grid. Whether the auction actually leads to offshore wind development off Virginia will thus depend on a number of factors, but the September auction will represent an important step toward the development of the United States' offshore wind resources.
As part of the Obama administration's efforts to promote the use of federal lands for the generation of renewable electricity, the federal Bureau of Ocean Energy Management is holding a series of auctions of the rights to lease sites in federal waters over the outer continental shelf. On July 31, BOEM held an auction for sites off Massachusetts and Rhode Island. In that auction, Deepwater Wind New England, LLC submitted the winning bid of about $3.8 million for the rights to lease two parcels covering 164,750 acres offshore New England.
BOEM will hold its second competitive lease auction on September 4 for sites off Virginia. The Virginia auction will be for a single lease for a designated wind energy area covering about 112,799 acres. The western edge of the lease area is located about 23.5 nautical miles off the Virginia Beach coastline. If fully developed, BOEM expects the Virginia lease area to support more than 2,000 megawatts of wind generation.
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| The Virginia Wind Energy Area is outlined in blue in this map provided by BOEM. |
BOEM's current offshore wind leasing program - known as "Smart from the Start" - features a process reliant on multiple rounds of proposals and calls for public feedback. For Virginia waters, that process began in February 2012 when BOEM published a Call for Information and Nominations in the Federal Register. The Call was designed to evaluate competitive interest for the area, as well as to seek public feedback on existing uses and other considerations relevant to leasing the sea space. Simultaneously, BOEM published a Notice of Availability for the final Environmental Assessment and Finding of No Significant for commercial wind lease issuance and site assessment activities on the Atlantic outer continental shelf offshore New Jersey, Delaware, Maryland, and Virginia.
BOEM received eight nominations of interest in the lease area in response to the Call. The eight companies responding with interest were:
- Apex Virginia Offshore Wind, LLC
- Arcadia Offshore Virginia, LLC
- Cirrus Wind Energy, Inc.
- Dominion Virginia Power
- enXco Development Corporation
- Fisherman’s Energy, LLC
- Iberdrola Renewables Inc.
- Orisol Energy US, Inc.
As with the recent auction for sites off Rhode Island and Massachusetts, some of these companies may not choose to participate in the auction. While BOEM had found nine companies to be legally, technically, and financially qualified to participate in the New England auction, only three actually submitted bids. For example, Fisherman's Energy and Iberdrola Renewables both qualified for the New England auction, but did not bid.
Assuming interest remains in the Virginia sites, the September auction is expected to yield a single winner. That winning bidder will pay the amount specified in the final bid for the right to lease part or all of the Virginia wind energy area. Development of an offshore wind project would then require a series of additional steps, ranging from financing to permitting to interconnection with the mainland grid. Whether the auction actually leads to offshore wind development off Virginia will thus depend on a number of factors, but the September auction will represent an important step toward the development of the United States' offshore wind resources.
US holds first offshore wind site lease auction
Thursday, August 1, 2013
Yesterday the U.S. Department of the Interior held its first competitive lease sale for renewable energy on the Outer Continental Shelf. With a total bid of about $3.8 million, Deepwater Wind New England, LLC won the rights to lease two parcels covering 164,750 acres offshore Rhode Island and Massachusetts. What do the auction results mean?
Consistent with President Obama's climate action plan, the Interior Department is promoting the use of federal lands for the production of renewable electricity. Yesterday's auction represents the first competitive auction for leases for offshore wind sites in federal waters. Following significant stakeholder process, the Interior Department identified and refined the parcels off Rhode Island and Massachusetts, and solicited interest in leasing sites. In June, the Interior Department announced that nine companies were legally, technically, and financially qualified to participate in the auction.
The auction took place in two phases in late July. First, a panel met to consider non-monetary factors, including whether any bidders held agreements that could make their project a more realistic success. For example, bidders demonstrating a power purchase agreement or joint development agreement could score bonus points enabling them to compete against higher monetary bids. Deepwater Wind's joint development agreement with the State of Rhode Island thus gave it an advantage in the second round held on July 31. This round took a more traditional auction format, with bidders placing a series of increasing bids until only one bidder remained for each parcel.
Three bidders participated in the auction: Deepwater Wind New England, LLC, Sea Breeze Energy, LLC, and US Wind Inc. After 4 rounds, Deepwater Wind had won the south parcel for $94,153, and only one other company remained in the competition for the north parcel. By round 11, Deepwater Wind had won the north parcel with a bid of $3,744,135.
With the auction completed, Deepwater Wind has 10 days to execute the lease agreements. Its first rent under the leases will be due in 45 days. Lease fees for the sites will be charged at $3 per acre, and if Deepwater Wind develops an operating project, it will also pay an annual fee roughly equal to 2% of its wholesale energy market revenues.
Building on this first auction, the Department of the Interior plans to hold a second auction for sites off Virginia in September. Eight bidders have been deemed qualified to participate in the Virginia auction. How many bidders will actually participate in the auction? How much competitive interest will arise? For what price will the parcels' lease rights sell? Will the leases - whether off Rhode Island and Massachusetts, or off Virginia - lead to operating offshore wind projects? Time will tell how the 2013 offshore wind lease auctions affect U.S. energy development.
Consistent with President Obama's climate action plan, the Interior Department is promoting the use of federal lands for the production of renewable electricity. Yesterday's auction represents the first competitive auction for leases for offshore wind sites in federal waters. Following significant stakeholder process, the Interior Department identified and refined the parcels off Rhode Island and Massachusetts, and solicited interest in leasing sites. In June, the Interior Department announced that nine companies were legally, technically, and financially qualified to participate in the auction.
The auction took place in two phases in late July. First, a panel met to consider non-monetary factors, including whether any bidders held agreements that could make their project a more realistic success. For example, bidders demonstrating a power purchase agreement or joint development agreement could score bonus points enabling them to compete against higher monetary bids. Deepwater Wind's joint development agreement with the State of Rhode Island thus gave it an advantage in the second round held on July 31. This round took a more traditional auction format, with bidders placing a series of increasing bids until only one bidder remained for each parcel.
Three bidders participated in the auction: Deepwater Wind New England, LLC, Sea Breeze Energy, LLC, and US Wind Inc. After 4 rounds, Deepwater Wind had won the south parcel for $94,153, and only one other company remained in the competition for the north parcel. By round 11, Deepwater Wind had won the north parcel with a bid of $3,744,135.
With the auction completed, Deepwater Wind has 10 days to execute the lease agreements. Its first rent under the leases will be due in 45 days. Lease fees for the sites will be charged at $3 per acre, and if Deepwater Wind develops an operating project, it will also pay an annual fee roughly equal to 2% of its wholesale energy market revenues.
Building on this first auction, the Department of the Interior plans to hold a second auction for sites off Virginia in September. Eight bidders have been deemed qualified to participate in the Virginia auction. How many bidders will actually participate in the auction? How much competitive interest will arise? For what price will the parcels' lease rights sell? Will the leases - whether off Rhode Island and Massachusetts, or off Virginia - lead to operating offshore wind projects? Time will tell how the 2013 offshore wind lease auctions affect U.S. energy development.
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