The U.S. Interior Department designated an area off the coasts of Rhode Island and Massachusetts where developers may build sea-based wind farms.
The department invited energy companies to submit proposals for wind projects in a statement today. It designated similar areas off the coasts of Delaware, Maryland, New Jersey and Virginia in February and plans to offer commercial leases in those places as early as 2012.
Today's call for proposals will determine whether there is competitive interest in the area. If few developers apply, the department will streamline the process to make leasing faster. Interior handles commercial leasing for all energy projects more than 3 miles (4.8 kilometers) offshore.
"By focusing on priority areas with high wind potential and fewer conflicts, and conducting early, coordinated reviews, we can accelerate the leasing process," Interior Secretary Ken Salazar said in the statement.
The department's Bureau of Ocean Energy Management, Regulation and Enforcement also will complete an environmental review of the zone and consider alternatives through a public comment process. Any leases awarded to developers will not authorize construction, Interior said in July. Proposed projects would require further site-specific environmental reviews.
'Huge Step Forward'
"The establishment of commercial lease areas is a huge step forward," Amy Grace, an analyst with Bloomberg New Energy Finance, said today in an e-mail. It took about ten years for Cape Wind Associates LLC to receive final permits for its 468- megawatt project off Cape Cod, Massachusetts, she said.
Interior's latest call for proposals "should solicit interest from existing offshore developers Deepwater Wind, NRG Bluewater, and Fisherman's Energy, as well as Iberdrola, who has indicated an interest in moving to offshore development in prior calls," Grace said.
Interior on April 12 issued a determination of no competitive interest for the zone off Delaware, and said NRG Energy Inc.'s Bluewater Wind LLC was the only company to submit a bid. Bluewater proposes to build a 450-megawatt project more than 13 miles from shore. Regulators in 2008 approved the company's contract to sell 200 megawatts of output to utility Delmarva Power & Light Co., though Bluewater is still negotiating power purchase agreements for the remaining capacity.
Leases Offshore Maryland
Companies that have expressed interest in leases offshore from Maryland include Bluewater, Iberdrola SA, the world's largest wind-power generator, and U.K-based developer Renewable Energy Systems Ltd. Energy Management Inc., the parent of Cape Wind's developer, and Fishermen's Energy, which in May received approval for a demonstration project off New Jersey, also have submitted bids in Maryland.
Other companies that have shown interest in leases off the coast of New Jersey include Bluewater, Neptune Wind LLC, Deepwater Wind LLC, U.K.-based TCI Renewables Ltd., Dublin, Ireland-based Mainstream Renewable Power Ltd., and Enxco Development Corp.
Interior has not yet disclosed the names of interested bidders in Virginia and said today additional wind zones will be identified soon in North Carolina and Massachusetts.
