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Offshore wind development moves forward with new things

The New York Bight auction consists of six leases, including an estimated 5.6GW bottom fixed offshore wind capacity, specifically for New York and New Jersey offshore wind requirements. To date, New York and New Jersey have secured a total capacity of 8.1 GW from offshore wind developers with the goal of installing 16.5 GW of offshore wind by 2035.

On Wednesday, bidding will begin at $ 24,711 per square kilometer on all six leases, which is equivalent to an option payment totaling $ 49 million. By the end of the day and the 21st round, cumulative bids had exceeded $ 1.5 billion. Bidding continues on Thursday. The three leases secured bids in excess of $ 900,000 per square kilometer, while the fourth lease was slightly below the $ 900,000 level. The bid for the two leases was approximately $ 575,000 per square kilometer.

The final auction by BOEM resulted in a lease of Beacon Wind, Liberty Wind and Mayflower Wind. In 2019, it was signed for about $ 250,000 per square kilometer. This amount is effectively an option fee for developing a lease. After the lease is secured and the developer pays the lease fee, the developer pays an annual rent ($ 3 / acre) until commercial operation begins. The operating fee is paid based on the set formula.

The increasing trend in option payments for specific offshore winds is common to recent European offshore wind leases and reflects a high level of interest and confidence in offshore wind projects. As developers pay more for the front end, they try to maintain margins, putting pressure on the supply chain to lower prices.

The online auction, which began on Wednesday, February 23, invited 25 companies, including a major offshore wind development company that already has US offshore wind leasing. There were 13 active bids in the final bid round of the day. .. The auction will continue on Thursday, February 24th.

The awarding of a lease does not guarantee the sale of offshore wind capacity. Successful developers need to secure off-take commitments through state procurement rounds. The northeastern and Mid-Atlantic states have so far identified 34 GW of offshore wind targets, of which 17.5 GW have offtakes.

Once a developer is selected, the developer can submit a site evaluation plan (SAP) to BOEM for approval. Once approved, the developer will conduct a detailed site survey and allow the developer to develop a construction and operation plan (COP). The SAP phase is expected to take up to 5 years.

The COP shows the strategy of developers building and operating wind farms. This document and the review of the project’s environmental and stakeholder impact will take approximately two years. Therefore, the first lease awarded by BOEM in New York Bay could see offshore wind power by the end of the decade.

All details of the New York Bight auction and all other US offshore wind projects can be found in the monthly US Wind Market Update report produced by Intelatus Global Partners.

apply Click here for Intelatus’ monthly US offshore wind report.

https://www.oedigital.com/news/494554-offshore-wind-development-moves-forward-in-the-new-york-bight Offshore wind development moves forward with new things

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