Lease Jackpot Signals Bullish Outlook for U.S. Offshore Wind
The record-breaking $4.4 billion sale of federal leases off the New York and New Jersey coasts is the strongest sign yet that the offshore wind industry has a firm U.S. foothold, indicating that developers will eagerly open their wallets for other federal waters the government plans to auction.
Developers last week shelled out the cash for six leasing areas in the so-called New York Bight, in the first offshore wind lease auction held by the Biden administration. Not only is the result a ringing endorsement of the administration's aggressive goal of installing 30 gigawatts of offshore wind by 2030, it also reflects industry confidence in moves by offshore regulators to improve both the leasing process and permitting of projects and increasing buy-in from state governments, industry watchers say.
"It sends a very positive signal that the industry is willing to pony up this kind of money for offshore wind leases when there is no guarantee of the final permit," said Blank Rome LLP of counsel Joan Bondareff, a former chief counsel at the U.S. Department of Transportation's Maritime Administration who recently wrapped up a stint chairing the Virginia Offshore Wind Development Authority. "But optimism and the support of the Biden administration as well as the adjacent state governors has overcome any fear here."
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“Lease Jackpot Signals Bullish Outlook for U.S. Offshore Wind,” by Keith Goldberg was published in Law360 on March 1, 2022.