The Biden administration has announced intentions to conduct up to twelve auctions of offshore wind development rights by 2028, with four auctions slated before the end of this year, according to a statement from the Interior Department.
The strategic scheduling of these auctions aims to provide clarity and facilitate planning for stakeholders involved in projects necessitating significant investment and infrastructure development. The Interior Department emphasized the importance of this initiative in a bid to bolster the burgeoning offshore wind sector in the United States.
Interior Secretary Deb Haaland underscored the significance of the leasing schedule, stating, “Our offshore wind leasing schedule will provide predictability to help developers and communities plan ahead and will provide the confidence needed to continue building on the tremendous offshore wind supply chain and manufacturing investments that we've already seen.”
The move comes as the administration is committed to supporting the growth of the U.S. offshore wind industry amid challenges such as inflation, interest rates, and supply chain disruptions. Notably, recent setbacks in New York state have highlighted the complexities facing offshore wind projects.
Outlined in the Interior Department's schedule are lease sales for various regions, including the Central Atlantic, Gulf of Maine, Gulf of Mexico, and Oregon for the current year. Future auctions are planned for areas such as the Central Atlantic, Gulf of Mexico, New York Bight, California, an unspecified U.S. territory, Gulf of Maine, and Hawaii through 2028.
These auctions are strategically timed in alignment with the administration's broader energy strategy and statutory requirements, including provisions outlined in Biden's landmark climate change legislation, the Inflation Reduction Act.
In addition to establishing the leasing schedule, new regulations finalized by the Interior Department aim to streamline certain requirements for offshore wind development and reduce industry costs by $1.9 billion over the next two decades. Changes include eliminating specific requirements for meteorological buoys, deferring certain survey requirements until project approval, and allowing incremental funding of decommissioning accounts over the life of a facility.
