N.Y., N.J. Offshore Wind Sites Draw Record Interest for Auction

(Bloomberg) -- At least 14 companies are vying for the rights to build wind farms off the coast of New York and New Jersey -- topping a previous record as renewable developers compete for the chance to sell carbon-free electricity to Northeast U.S. states eager for clean energy.

The firms bidding in a government auction are jockeying over six leases spanning 488,201 acres (197,570 hectares) in the New York Bight, a shallow stretch of the Atlantic between Long Island and New Jersey with the potential to generate 5.6 gigawatts to 7 gigawatts of zero-emission power. That’s enough electricity to power about 2 million homes.

The auction, which could span three days, is set to obliterate past records, driven by pent-up demand for limited territory to build offshore wind farms and a clamor of state-level commitments to buy the electricity they ultimately produce. New York has set a goal of 9 gigawatts of wind power by 2035 and New Jersey plans to have 7.5 gigawatts by that point. 

Developers are submitting anonymous bids, with $48.8 million offered in the first round, according to an Interior Department summary of ongoing auction results. Initial bidding interest concentrated on the largest lease on offer: a 125,964 acre parcel 32 miles (52 kilometers) from the New Jersey shore.

Companies that registered as possible participants before the sale include European heavyweights such as Avangrid Renewables, EDF Renewables Development Inc. and Equinor ASA as well as U.S. firms including Invenergy, Arevia Power and Horizon Wind Power. 

During the U.S. government’s last offshore wind auction nearly four years ago, 11 companies competed for three tracts off the Massachusetts coast, with winning bids topping $405 million after 32 rounds.

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