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A week before the presidential election, with one candidate pledging to immediately end offshore wind projects, it wasn’t surprising that interest in the auction of federal leases for these renewable energy projects was “lackluster,” as one media outlet reported.
Rather, the fact that half of the available leases off the coast of New England were purchased on Oct. 29 could be seen as an endorsement of the role offshore wind will play in meeting the country’s growing renewable energy demand to meet climate change goals.
Donald Trump, who was elected president on Nov. 5, has pledged to end offshore wind “on day one.” Industry experts believe that Trump could slow, but not stop, the growth of renewable energy in the U.S.
Last month’s lease auction by the Bureau of Ocean Energy Management, held just before the election, lends credence to this assessment.
During the late October auction by the Bureau of Ocean Energy Management, four of eight available offshore wind leases were sold. Even advocates of offshore wind power did not expect all of the leases to be purchased given the uncertainty around the industry. And, although the winning bids were lower than some industry experts expected, this could mean lower prices for customers when a project ultimately comes on line.
This doesn’t necessarily mean there is little interest in offshore wind in the long term, but it shows that short-term concerns, like who was going to win the presidency, likely dampened interest in the leases that were auctioned. Some interested companies may have held off because another lease auction will be held in four years, when there could be more certainty.
On the flip side, the fact that companies, including Central Maine Power owner Avangrid, purchased leases to install offshore wind turbines off the coast of Maine and Massachusetts is an endorsement of the potential for this relatively new form of electricity generation. It is also a reminder that we are in the fairly early days of offshore wind development, especially in New England, and many hurdles remain to be cleared before energy is flowing from turbines in the ocean, which could still take a decade or more.
U.S. Secretary of the Interior Deb Haaland called the awarding of the leases in late October “a critical step in our fight against climate change.”
“Together, we can create good paying jobs, build a domestic supply chain, and ensure that the momentum of this offshore industry continues for generations to come,” she added in a statement.
Maine hopes to play a leading role in that industry, but its path is far from clear. Gov. Janet Mills has made a switch to renewable energy a cornerstone of her environmental policy.
Offshore wind, including a proposed port where turbines can be built and assembled, is part of that plan.
Separate from last month’s offshore lease auction, Maine is moving forward on a research floating wind array, which was granted a lease in August to operate in federal waters, about 30 miles southeast of Portland. This project offers an important test of new floating technology developed by the University of Maine that could be used off the state’s coast. The Maine Public Utilities Commission is expected to soon set the terms of a power purchase agreement for the electricity that is generated by the research array.
Lessons learned from the array can be critical in informing the development and deployment of commercial offshore wind in the northeast.
More data needs to be collected about the potential impact of offshore wind on marine species, including endangered right whales, and on commercial fishing, including lobster harvesting.
But, last month’s federal lease auction shows that there is serious interest — despite threats to hamper the industry from the next president — in developing offshore wind to help meet growing demand for renewable energy.
So, while there is reason for this optimism, there are also reminders that the path to renewable energy development remains long, and sometimes circuitous.