First-ever California offshore wind auction nets $757 million

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First-ever California offshore wind auction nets $757 million
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The first-ever auction for leases to build massive wind farms off California’s coast netted final bids of $757.1 million today.

in the U.S. averages about $84 per megawatt-hour, more than most other types of energy, according to the U.S. Department of Energy.Today's auction is just one of many steps in the permitting and construction of commercial offshore wind development off California. Developers must submit plans detailing the cost and scale of the wind farms before going through an extensive environmental review.

“We know that we have to do something different. Offshore wind is different. That being said, we're also acutely aware that there are impacts on communities.”Wind power tends to be stronger in the ocean than on land, making offshore wind a particularly valuable renewable energy source that could help the grid during times when other renewables like traditional wind and solar can’t produce energy.

The turbines off Eureka would be in waters 2,490 feet deep and for Morro Bay, 3,320 feet, he said. No project in the world exists in waters this deep. The deepest project to date is in Norway, in waters 721 feet deep, Dagher said. At ahosted by the California Energy Commission on Monday, state leaders, public officials and companies gathered to discuss offshore wind deployment in California ahead of the lease sale.

The federal government will offer bidding credits for developers who enter into community benefit agreements and invest in workforce training or supply chain improvements in communities. Companies that develop offshore wind projects in California also will be required to enter into labor agreements and work with Native American tribes before beginning construction.

“We want to make sure it's done right. There's a lot that we don't know about offshore wind in the West and what that means for various marine and coastal ecosystems.

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