Oregon Offshore Wind Auction Postponed Due to Lack of Interest

In a surprising turn of events, the Bureau of Ocean Energy Management (BOEM) has announced the postponement of its highly anticipated offshore wind energy auction for Oregon’s coastal waters. The decision comes as a result of insufficient interest from potential bidders and a request from Oregon Governor Tina Kotek, casting a shadow over the region’s renewable energy aspirations.

The auction, originally scheduled for October 15th, would have been the first such lease auction for waters off Oregon’s coast. It was set to offer two lease areas that would have been optimal for floating offshore wind technology.

Adding to the complexity of the situation, Governor Kotek sent a letter to BOEM this morning, withdrawing from the BOEM Oregon Intergovernmental Renewable Energy Task Force. She also requested that the department halt all lease auctions in the region to allow for the development and finalization of Oregon’s Offshore Wind (OSW) Energy Roadmap. This roadmap, mandated by a bill which Governor Kotek signed into law earlier this year, aims to protect Oregon’s diverse interests while advancing economic, environmental, and community benefits in a responsible manner.

“This delay is a setback, but it doesn’t diminish our commitment to offshore wind development,” a BOEM spokesperson stated. “We’re reassessing the market conditions and will continue to work closely with stakeholders to ensure a successful future auction.”

The postponement comes as a stark contrast to the Biden-Harris administration’s recent successes in offshore wind development. Since 2021, the Department of the Interior has approved ten commercial-scale offshore wind projects, with a combined capacity of approximately 15 gigawatts – enough to power 5.25 million homes.

Despite this setback, BOEM remains committed to advancing offshore wind opportunities in the region. The agency plans to continue its collaboration with federal, state, and local agencies, as well as Tribal governments, to coordinate potential leasing and support ongoing stakeholder engagement.

In response to the Governor’s request, the BlueGreen Alliance issued a statement from Oregon Senior State Policy Manager Ranfis Villatoro: “Offshore wind continues to be a critical opportunity for Oregon to meet its 100% clean energy goals by 2040, address climate change, and provide economic opportunities for Oregon workers and businesses. However, building large renewable energy infrastructure takes time and Oregon owes it to its communities and coastal ecosystem to do it the right way.”

The Pacific Northwest of Utility Conference Committee forecasts a 30% energy demand increase between now and 2033, requiring 7,300 megawatts of new energy generation capacity. This underscores the importance of offshore wind development in meeting Oregon’s future energy needs for its clean economy.

Secretary Deb Haaland recently unveiled a schedule of potential additional lease sales through 2028, signaling the administration’s long-term commitment to offshore wind development. However, the Oregon offshore wind auction delay serves as a reminder of the challenges facing the industry and the need for careful planning and stakeholder engagement.