Offshore wind farms coming to southeastern NC
North Carolina's budding offshore wind sector has two major new players. Duke Energy and TotalEnergies Renewables won a federal auction this week to build wind farms on two adjacent sites south of Bald Head Island.
Posted — UpdatedThe U.S. Bureau of Ocean Energy Management announced Wednesday that Duke Energy and TotalEnergies were the winning bidders of its Carolina Long Bay Auction, paving the way for more wind turbines off the coast.
When they’re fully developed several years from now, the sites together could power half a million homes, according to BOEM.
TotalEnergies’ winning bid was $160 million. Duke bid $155 million.
For the first time, BOEM included an optional credit for the auction. Winning bidders could receive a credit of up to 20% of their bid by committing to invest a slightly lesser amount in workforce training programs or boosting the U.S. supply chain for the industry.
The two winning companies will invest a total of up to $42 million in those initiatives.
“The new bidding credit in the Carolina Long Bay auction will result in tangible investments for workforce training and businesses in the United States to ultimately create jobs in the U.S. across the industries needed to support achieving our offshore wind goals,” BOEM Director Amanda Lefton said.
North Carolina has one other lease already under development off the northern Outer Banks. Avangrid Renewables’ Kitty Hawk project will have the potential to generate 2.5 gigawatts when it’s fully developed. About a quarter of that capacity is expected to come online by 2026, and the remainder by 2030.
Two larger lease sites off the North Carolina coast were announced by BOEM last week. They total more than 1 million acres. It’s not clear whether they’ll be able to be put up for bid before July 1, when a 10-year ban takes effect.
Governor Roy Cooper, D-North Carolina, added his voice to that chorus Thursday.
Calling the new leases "an important step in moving toward North Carolina’s clean energy future," Cooper spokesman Jordan Monaghan said, "The Governor encourages congressional action to remove the ban on future offshore wind leases off our coast in order to create additional opportunities for clean energy, economic growth, and job creation.”
Meanwhile, environmental advocates cheered the new leases.
"The significance of this auction cannot be overstated," said Erin Carey, the director of coastal programs for the N.C. Sierra Club. "At a time when our country is struggling with volatility and skyrocketing prices in fossil fuel supply and demand, it's more important than ever that we look toward a future of clean energy independence.”
According to the Sierra Club, developing North Carolina’s offshore wind potential could bring the state investments of up to $4.3 billion, including jobs and industry infrastructure.
“Securing this lease creates optionality for future offshore wind if the North Carolina Utilities Commission determines it’s part of the least-cost path to achieve 70% carbon reduction by 2030 and net-zero by 2050,” said Stephen De May, North Carolina president for Duke.
"We look forward to [Duke] including significant wind resources in their proposed carbon plan Monday and ensuring that clean, renewable power comes to North Carolina ratepayers, especially those who have been disproportionately the victim of their coal and gas pollution—namely, communities of color," said Montravias King, clean energy director for the NC League of Conservation Voters.
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