News Of Oregon Offshore Wind Auction Cancellation Welcomed

Following several challenges to the first-ever Oregon offshore wind auction scheduled for October, bidders withdrew, leaving just one potential buyer. The U.S. Bureau of Ocean Energy Management (BOEM) has now canceled the auction.

Offshore Wind Industry Faces Several Challenges

Soaring costs, countless legal challenges, and significant negative press around the recent East Coast blade failure have pressured the fledgling U.S. offshore wind industry. The challenges to the two wind auctions that cover 195,000 acres near Coos Bay and Brookings set to be held on October 15 leave a more uncertain landscape.

According to federal officials, the two sites could generate around 3 gigawatts of renewable energy once completed and this could power about 1 million homes. The climate goals of the Biden administration include an aggressive push to transition to clean energy.

To deliver power to 10 million homes by 2030, 30 gigawatts of energy from offshore wind will need to be produced.

But there are other considerations. The Confederated Tribes of Coos, Lower Umpqua, and Siuslaw Indians filed a lawsuit against the federal government last week to stop the October auction.

The tribes want the bureau to conduct a full environmental analysis of the effects that the floating wind stations may have on the marine environment and local fisheries off the Oregon coast.

They also indicated that a noncompetitive auction would mean little or no incentive for a developer to provide community benefits such as fair wages or local workforce training.

Oregon governor, Tina Kotek- in a letter delivered the same day the auctions were canceled, indicated that a noncompetitive auction would pose a risk “to Oregon’s developing supply chain industry and to its environmentally sensitive offshore habitats.”

Kotek echoed the concerns of the Tribes and members of the fishing industry. Heather Mann, representing Newports’s Midwater Trawlers Cooperative, and Brad Knepper, chair of the tribal council, both say they will continue to work with the state and others interested.

Before leases are sold, efforts must be made to understand the challenges and benefits of offshore wind development.

Oregon Offshore Wind Auction Cancelled

An auction scheduled to take place in the Gulf of Mexico was called off in July due to a lack of competitive interest, according to spokesperson John Romero.

While the October auctions would have been the first nationwide, they are now the second to be canceled. Fishermen and Coastal tribes who opposed the floating wind farms off the Oregon Coast vehemently hailed the decision as a victory.

Although five companies had qualified to bid by September, three withdrew, followed by another, leaving just one bidder- Oregon’s NewSun Energy as the sole participant. This was confirmed by the bureau on Friday.

Bidders Retreat From Southern Oregon Offshore Wind Project As Local Opposition Escalates

NewSun, a developer of solar projects in south-central and eastern Oregon, has claimed the clean energy transition of the state is being delayed and has previously filed lawsuits. To transmit offshore wind energy to onshore users, NewSun signed up over 2 gigawatts of transmission requests in southern Oregon on the Bonneville Power Administration system.

A lack of market readiness, growing opposition from coastal communities and state legislators, and the tribal lawsuit were cited by Kotek as as the reasons for halting the lease auction. The non-competitive nature of the auction was also a concern.

The cancellation is a postponement and BOEM is committed to their continued collaboration with representatives from federal, state, and local agencies and Tribal governments and intends to engage in a state-led development of a strategic roadmap for offshore wind.

Proponents of clean energy point to the lack of interest in bidding as a sign that the state isn’t ready for the investment.

Kotek indicated that the state needs more time to develop guidelines and policies but continues to support the future of offshore wind in Oregon. Her administration must have the state’s Roadmap and policies in place before BOEM continues additional lease-related activities.