July 25, 2013
Energy is up for auction across the U.S. Land leases are being negotiated and going to the highest bidder. Those that seek to engage in energy have an opportunity to enter in the industry as an engage and captive player. The release of the “Auction date set for right to develop wind energy” is open.
Pilot Online reported, the U.S. government announced the competitive auction set for September 4 to sell the rights for developing wind energy on nearly 112,800 acres at least 23.5 nautical miles due east of Virginia Beach off the Virginia coast in the Atlantic Ocean.
This is the second auction by the Bureau of Ocean Energy Management, with the first occurring on July 31 off Rhode Island and Massachusetts. Some eight companies are stated to bid in secret via computer.
The process will occur with the government setting the bidding floor for the starting price as the prices rise to some final call.
“The area selected off Virginia as appropriate for development is estimated to hold the potential for creating more than 2,000 megawatts of electricity – enough to power about 700,000 homes. The area would not overlap with a wedge-like parcel recommended for oil and gas drilling, which remains on hold following the record Deepwater Horizon oil spill in the Gulf of Mexico.”
Mary Doswell, senior vice president of alternative energy solutions for Dominion Virginia Power, “estimates that it could take six or seven years after the auction for all studies and approvals to be completed, and then more time for construction of the turbines and the laying of underwater transmission cables.”