October 31, 2024 — Two companies have won development rights to construct floating offshore wind turbines off Maine’s coastline, but lackluster interest in the bids highlights the impact of inflation and other economic challenges that have slowed the industry.
On Tuesday, the Bureau of Ocean Energy Management announced that the federal government’s “first-ever” wind energy lease sale resulted in nearly $22 million in lease payments for four parcels off the coast of Maine and Massachusetts.
Connecticut-based Avangrid Renewables submitted winning bids of $4.9 million and $6.2 million for two parcels about 30 miles off the coast of Cape Cod in Massachusetts. In comparison, Invenergy NE Offshore Wind won a $4.9 million bid to develop wind energy more than 46 miles off Maine’s coastline and another project off Cape Cod for $5.8 million. Combined, the companies leased nearly 440,000 acres of federal waters.
However, only half of the areas offered for lease by the federal agency were bid on, far less than offshore wind leases in previous rounds. In 2022, developers bid $4.37 billion on six lease parcels off the coast of New York and another $757 million on areas off California’s shores, according to agency data.