EnergyWatch

Market leader wants price cap on US offshore wind tenders after recent auction

Auctions ending at multi-billion-dollar price levels are slowing US expansion of offshore, says Ørsted executive after the New York Bight auction, where the Danish utility nonetheless seems willing to pay USD 400m for a license.

Photo: Ørsted

On Sunday, a special item was auctioned and sold for USD 518,1000, the price the buyer paid for the ball US football star Tom Brady held when he in January scored the final touchdown of his career – or at least until next time. Merely hours after the gavel struck, the quarterback announced that he would not go through with plans to retire from the sport.

Such shows how valuations can be quite subject to change. That also applies to US offshore wind. In late 2018, it seemed almost absurd that three bidders were willing to lay down nearly USD 1,000 per hectare of seafloor off the coast of Massachusetts. Bearing in mind the average price in last month's New York Bight auction, though, where the cost had almost multiplied by ten to USD 8,951 per hectare, the preceding round's price practically looks like a steal.

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