Oregon’s first-ever offshore wind auction in jeopardy
The future of Oregon’s contentious first-ever offshore wind auction is unclear as most of the developers eligible to bid no longer plan to participate.The Oregonian/OregonLive has learned several of the out-of-state companies have pulled their interest and another declined to comment, leaving one developer, Oregon-based NewSun Energy, to bid in the auction.It’s unclear whether the Oct. 15 lease sale will go on with a single bidder.The U.S. Bureau of Ocean Energy Management did not reply to numerous emails asking about the status of the auction or the number of bidders who plan to participate.In early September, the bureau announced five companies were eligible to bid on leases for two offshore wind energy areas totaling nearly 195,000 acres, one near Coos Bay and the other near Brookings. Four of the companies are well known in the offshore wind industry, while the fifth, an unfamiliar name, turned out to be NewSun Energy, a controversial Oregon-based developer.The Oregonian/OregonLive independently confirmed Wednesday that Mainstream Renewable Energy, BlueFloat Energy and Avangrid won’t participate in the lease sale. Ocean Winds, the fourth out-of-state eligible developer, declined to comment.NewSun’s founder and CEO Jake Stephens told The Oregonian/OregonLive he is still planning to bid.NewSun has built several utility-scale solar farms in south-central and eastern Oregon and is best known for its at times controversial ambitions to reshape Oregon’s green energy landscape.It’s not the first U.S. offshore wind lease auction that has attracted paltry interest.At the end of July, the Bureau of Ocean Energy Management canceled the second Gulf of Mexico auction due to a “lack of competitive interest.” And last summer, the first Gulf of Mexico auction ended with a single winning bid on one of three lease areas, with several eligible developers opting to sit out the auction. Early lease sales in the Atlantic saw similar low participation from developers.The lawyer for a group of Oregon’s tribes, which earlier this month sued the federal government to stop the auction, said going forward with a non-competitive lease sale could hurt Oregon’s interests.If only one bidder is left in the auction, “it is in everyone’s interest to cancel the auction if and until there is more interest. Without a competitive auction, there is little or no incentive for a developer to provide community benefits as part of its bid,” Rick Eichstaedt, attorney for the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians, told The Oregonian/OregonLive.Offshore wind energy is considered a critical part of achieving the Biden administration’s climate goals, including the aggressive push to transition to clean energy. The Biden administration wants to deploy 30 gigawatts of offshore wind by 2030, enough to provide power for 10 million homes.But the fledgling U.S. industry has faced an uncertain landscape in recent months, including soaring costs, delays over multiple lawsuits and negative press in the wake of a blade failure on the East Coast.— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.Our journalism needs your support. Subscribe today to OregonLive.com.
The future of Oregon’s contentious first-ever offshore wind auction is unclear as most of the developers eligible to bid no longer plan to participate.
The future of Oregon’s contentious first-ever offshore wind auction is unclear as most of the developers eligible to bid no longer plan to participate.
The Oregonian/OregonLive has learned several of the out-of-state companies have pulled their interest and another declined to comment, leaving one developer, Oregon-based NewSun Energy, to bid in the auction.
It’s unclear whether the Oct. 15 lease sale will go on with a single bidder.
The U.S. Bureau of Ocean Energy Management did not reply to numerous emails asking about the status of the auction or the number of bidders who plan to participate.
In early September, the bureau announced five companies were eligible to bid on leases for two offshore wind energy areas totaling nearly 195,000 acres, one near Coos Bay and the other near Brookings. Four of the companies are well known in the offshore wind industry, while the fifth, an unfamiliar name, turned out to be NewSun Energy, a controversial Oregon-based developer.
The Oregonian/OregonLive independently confirmed Wednesday that Mainstream Renewable Energy, BlueFloat Energy and Avangrid won’t participate in the lease sale. Ocean Winds, the fourth out-of-state eligible developer, declined to comment.
NewSun’s founder and CEO Jake Stephens told The Oregonian/OregonLive he is still planning to bid.
NewSun has built several utility-scale solar farms in south-central and eastern Oregon and is best known for its at times controversial ambitions to reshape Oregon’s green energy landscape.
It’s not the first U.S. offshore wind lease auction that has attracted paltry interest.
At the end of July, the Bureau of Ocean Energy Management canceled the second Gulf of Mexico auction due to a “lack of competitive interest.” And last summer, the first Gulf of Mexico auction ended with a single winning bid on one of three lease areas, with several eligible developers opting to sit out the auction. Early lease sales in the Atlantic saw similar low participation from developers.
The lawyer for a group of Oregon’s tribes, which earlier this month sued the federal government to stop the auction, said going forward with a non-competitive lease sale could hurt Oregon’s interests.
If only one bidder is left in the auction, “it is in everyone’s interest to cancel the auction if and until there is more interest. Without a competitive auction, there is little or no incentive for a developer to provide community benefits as part of its bid,” Rick Eichstaedt, attorney for the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians, told The Oregonian/OregonLive.
Offshore wind energy is considered a critical part of achieving the Biden administration’s climate goals, including the aggressive push to transition to clean energy. The Biden administration wants to deploy 30 gigawatts of offshore wind by 2030, enough to provide power for 10 million homes.
But the fledgling U.S. industry has faced an uncertain landscape in recent months, including soaring costs, delays over multiple lawsuits and negative press in the wake of a blade failure on the East Coast.
— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.
Our journalism needs your support. Subscribe today to OregonLive.com.