Massachusetts Wind Leases Sold for Fraction of Prior Sale Price
The U.S. Interior Department sold two leases to build wind farms off the coast of Massachusetts to the only two bidders and for a fraction of what the agency received from previous sales.
RES America Inc. agreed to pay $281,285 for access to 187,523 acres and Offshore MW LLC is paying $166,886 for 166,886 acres, according to the Bureau of Ocean Energy Management. Previous auctions generated millions of dollars.
“We knew that developing an offshore wind facility in these areas is going to be more expensive,” she said. “As a result of that, we set the minimum price for the bids lower than for the other states. We’re happy with the results of this auction.”
“It’s difficult with the Investment Tax Credit to find a utility willing to pay four to five times the price of wholesale power for offshore wind, especially as the price for solar and onshore wind decline,” Grace said. “With the expiration of the federal tax credits, it’s even more difficult to justify.”