Political winds, not the strength of actual air currents, are driving offshore wind development from Texas to Louisiana.
After the first-ever auction for offshore wind leases within the Gulf of Mexico last yr yielded no bids for parcels in waters off Texas, federal regulators plan to overturn the choice second auction towards Louisiana. Last week, the U.S. Office of Ocean Energy Management proposed two recent lease areas totaling about 200,000 acres in federal waters south of the Texas-Louisiana line, an area that might provide a balance between stronger winds near Texas and more favorable policies from Louisiana.
“Texas leaders said some inflammatory things about offshore wind right before the latest lease sale,” said Jenny Netherton, program manager for Texas. Southeast Wind Coalition. “This definitely suggested to some investors that Texas was not the best option.”
Anti-wind laws and rhetoric from Texas state leaders have created uncertainty available in the market and deepened interest in Louisiana’s offshore offerings.
Despite the most effective conditions within the Persian Gulf for the event of offshore wind energy, the Texas lease area covering 200,000 acres near Galveston, not a single offer was obtained from developers in the course of the auction at the tip of August. Interest within the 100,000-acre piece of land near southwest Louisiana was also low, but a minimum of two offers were made. The winning bidder, a German wind energy developer RWEis currently planning a wind farm about 40 miles south of Lake Charles.
In addition to the brand new lease areas near Louisiana, BOEM plans to re-auction the Galveston sites, bringing the entire square footage to greater than 410,000. Federal estimates show that if the second-round lease areas are fully developed, they may have the ability to generate enough power for 1.2 million houses.
Tristan Baurick Attachments Mon, Mar 25, 10:18 (23 hours ago) to me The Office of Ocean Energy Management is offering its second offshore wind leasing sale this yr. Two lease areas to the east and closer to Louisiana will likely be recent lease areas. Last yr, two areas closer to Texas were offered at auction, but no bids emerged. Loan: Office of Ocean Management
The proposal to sell the lease will likely be subject to public discussion, which can end at the tip of May. The auction could happen as early as this summer.
Netherton said Texas seems as considering deterring offshore wind energy this yr because it was last yr. In early 2023, the state senator sponsored, amongst others: Bill it might allow Texas to dam wind farms from connecting to the state’s power grid and impose penalties for failing to satisfy power generation targets. The bill failed, however the proposal had a chilling effect on the wind industry.
About every week before last yr’s auction, Texas Land Commissioner Dawn Buckingham he promissed to do “everything in my power… to thwart this proposed nonsense,” calling wind farms an impediment to shipping and industrial fishing.
While wind farms in federal waters are supported by many environmental groups, offshore wind opponents in Texas and other states have raised concerns about harm to birds and other wildlife and potential waste from damaged or worn-out turbines.
Unlike Texas, Louisiana leaders are touting offshore wind as a technique to slow climate change and diversify the state’s economy. Former Gov. John Bel Edwards, a Democrat, stressed the necessity to rapidly expand offshore wind energy to satisfy his goal of “net zero” carbon emissions. Edwards Task Force on Climate Initiatives really useful that the state generate a minimum of 5,000 megawatts a yr — enough to power about 1 million homes — from offshore wind energy by 2035.
The bipartisan laws paved the best way for Louisiana’s expedited approval process for wind farms in state-managed waters that reach three miles from the coast. Louisiana has approved contracts with two corporations to construct small wind farms near Cameron Parish and Port Fourchon.
RWE lobbied regulators to expand leasing opportunities near Louisiana since it was “the only Gulf Coast state to signal its interest in pursuing an offshore wind policy,” the corporate said in a letter to BOEM.
Gov. Jeff Landry, a Republican who took office in January, has not provided convincing guidance on his position on offshore wind.
But Louisiana’s support alone will not be enough to draw developers to the Gulf. That’s why BOEM also plans to remove the rule limiting bidders to 1 lease.
Lowering the lease cap could make the Bay Area more competitive with the east and west coasts, where wind projects are progressing faster. The waters off the coast of New England are characterised by a few of the most effective wind speeds on the continent and a high concentration of energy consumers. While Louisiana has set offshore wind goals, some East Coast states have mandated that utilities get a few of their energy from wind and other renewable sources.
“This creates a built-in market for wind energy,” Netherton said. “We don’t have that here, so we have to take a different approach to make wind energy work.”
