United States

United States

US sets New Jersey auction date

UNITED STATES: The Bureau of Ocean Energy Management (BOEM) will auction an area off the New Jersey coast, northeast US, for the development of offshore wind on 9 November.

The New Jersey lease area will be auctioned in two zones
The New Jersey lease area will be auctioned in two zones

The 1,391-square kilometre area could support 3.4GW if fully developed, BOEM said, citing the National Renewable Energy Laboratory.

It comprises two zones: the North Lease area, which will be 746 square kilometres, and the South Lease area, totalling 649 square kilometres.

Thirteen companies have qualified to participate in the auction. Developers include EDF Renewable Energy, Fishermen's Energy, Iberdrola Renewables, OffshoreMW, US Mainstream Renewable Power, and RES America.

BOEM will be hoping the up-coming auction will be more successful than its last competitive lease.

In January, over half of the 3,000-square kilometre Massachusetts wind zone was left unleased. BOEM divided the lease area into four zones, ranging from 585 square kilometres to 1,004 square kilometres.

RES America and OffshoreMW were the only two of 12 qualified companies to make bids on the area's zones. RES America paid $281,285 for a 759-square kilometre parcel, which Denmark's Dong Energy would later acquire. OffshoreMW, a part of Germany's WindMW, bid $166,886 for the second, 675-square kilometre zone.

Deeper waters and the lack of state incentives could have contributed to the significantly lower prices received for wind energy lease areas off the coast of Massachusetts compared to previous auctions, BOEM Director Abby Ross Hopper said at the time.

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