Offshore Wind Energy
BOEM Issues Offshore Wind Research Lease to State of Maine
Today, the Bureau of Ocean Energy Management (BOEM) announced the execution of the nation’s first floating offshore wind energy research lease. The lease area covers a little under 15,000 acres located 28 nautical miles offshore Maine on the U.S. Outer Continental Shelf and could allow for the deployment of up to 12 floating offshore wind turbines capable of generating up to 144 megawatts of renewable energy.
The research array will allow the State, the fishing community, wildlife experts, the offshore wind industry, and others to conduct in-depth studies and thoroughly evaluate floating offshore wind as a renewable energy source in the region. Research conducted on the array will evaluate its compatibility with existing ocean uses and assess its potential effects on the environment, supply chains, and job creation.
“Floating wind opens up opportunities to produce renewable energy in deeper water farther offshore.” said BOEM Director Elizabeth Klein. “Signing the Gulf of Maine research lease demonstrates the commitment by both BOEM and the State of Maine to promote a clean energy future for the nation. It is another example of a successful all-of-government effort to reach the Administration’s offshore wind energy goals and to combat the impacts of climate change.”
Information gathered from the research lease will inform responsible commercial floating offshore wind development in the future and allow BOEM and Maine to capitalize on innovative technology, while protecting local and national interests and industries.
“Clean energy from offshore wind offers an historic opportunity for Maine to create good-paying jobs, reduce our reliance on fossil fuels, and fight climate change by cutting greenhouse gas emissions,” said Maine Governor Janet Mills. “This lease between the State and BOEM to support the nation’s first research array devoted to floating offshore wind technology is the result of extensive engagement with stakeholders and communities across our state to establish Maine as a leader in responsible offshore wind, in balance with our state’s marine economy and environment.”
Since the start of the Biden-Harris administration, the Department of the Interior has approved the nation’s first nine commercial scale offshore wind projects with a combined capacity of more than 13 gigawatts of clean energy — enough to power nearly 5 million homes. In that time, the Department has held five offshore wind lease auctions – including a record-breaking sale offshore New York and the first-ever sales offshore the Pacific Coast and in the Gulf of Mexico. The Department also recently announced a schedule to hold up to 12 additional lease sales through 2028. On August 14, BOEM will hold an offshore wind lease sale for the Central Atlantic, auctioning areas offshore Delaware, Maryland, and Virginia that could generate up to 6.3 gigawatts of clean energy and power up to 2.2 million homes.
BOEM received an application from the State of Maine for a renewable energy research lease in October 2021. On March 20, 2023, BOEM issued a Determination of No Competitive Interest for the area identified in Maine’s application.
BOEM engaged with the State of Maine Governor’s Energy Office throughout the application review and lease development process to develop a lease that yields high-quality research on offshore wind in the Gulf of Maine. On May 24, 2024, BOEM offered a research lease to the State of Maine after completing a Final Environmental Assessment and associated finding of no significant impacts.
As a research lease, the State of Maine or its designated operator will propose and conduct research regarding environmental and engineering aspects of the proposed project. This information will be made public and used to inform future planning, permitting, and construction of commercial-scale floating offshore wind projects in the region.
Construction activity on the research array is not likely to occur for several years. The lessee is first required to submit a Research Activities Plan to BOEM, which will undergo environmental analysis under the National Environmental Policy Act. Additional details on the timing of construction will become clearer as the permitting process progresses.
What’s in this news?
The European Commission has approved a €5 billion Danish State aid scheme to support offshore wind development. Covering the Hesselø and North Sea I Mid projects, the scheme is expected to play a key role in achieving the EU’s 2030 renewable energy targets and accelerating the transition to a net-zero economy.
The European Commission has approved a €5 billion (DKK 37.6 billion) Danish State aid scheme aimed at supporting offshore wind energy deployment.
The measure aligns with the objectives of the Clean Industrial Deal and is designed to contribute to the EU’s 2030 renewable energy targets.
Two offshore wind projects to be supported
The scheme will support the development of two major offshore wind farms:
- Hesselø Offshore Wind Farm
- Minimum capacity: 0.8 GW
- Expected annual generation: ~3.2 TWh
- North Sea I Mid Offshore Wind Farm
- Minimum capacity: 1 GW
- Expected annual generation: ~4.6 TWh
Combined, these projects are expected to generate electricity equivalent to approximately 25% of Denmark’s annual electricity production.
Two-way CfD mechanism
The support will be granted through a two-way Contract for Difference (CfD) mechanism:
- Producers receive payments when market prices fall below the strike price
- Producers pay back when market prices exceed the strike price
This design ensures both investor certainty and proper market functioning.
20-year support period
The scheme will run for 20 years and will be allocated via a competitive bidding process. Support will be based on potential generation capacity rather than actual production.
Supporting EU energy transition
The Commission concluded that the scheme is:
- Necessary and proportionate
- Supportive of the net-zero transition
- Effective in reducing fossil fuel dependency
and compliant with EU State aid rules.
Is Türkiye Ready for Offshore Wind? Industry Perspectives Point to Industrial Potential
Offshore wind energy is becoming one of the fastest-growing segments of the global energy transition. As the sector expands across Europe, discussions around Türkiye’s offshore wind potential are also gaining momentum.
Industry representatives speaking during KEY – The Energy Transition Expo 2026 highlighted both the opportunities and the structural challenges facing offshore wind development in Türkiye.
According to DÜRED Chairman Murat Durak, Türkiye already has a significant industrial base that could support offshore wind projects.
A Strong Industrial Ecosystem
Durak pointed out that Turkish shipyards and heavy industry facilities are already capable of manufacturing various offshore structures and components.
Some shipyards are already involved in manufacturing for European offshore projects, indicating that Türkiye could potentially play a role within the broader offshore wind supply chain.
This industrial capacity suggests that Türkiye could position itself not only as a project developer but also as a manufacturing and supply hub for offshore wind equipment.
Port Infrastructure Remains a Critical Requirement
Despite this industrial capacity, Durak noted that one of the key missing elements is dedicated offshore wind port infrastructure.
Offshore wind projects require large-scale logistics operations for transporting turbine components, installing foundations, and maintaining offshore structures.
Developing suitable port infrastructure is therefore considered an important step for enabling large-scale offshore wind projects in Türkiye.
Supply Chain Opportunities
DÜRED Board Member Bilgihan Yaşacan emphasized the importance of the offshore wind supply chain.
According to Yaşacan, offshore wind development creates opportunities across a wide range of sectors, including:
- marine construction
- engineering services
- offshore platforms
- subsea cable installation
- heavy logistics and equipment manufacturing
He stressed that supporting the development of companies capable of operating in offshore environments will be essential for building a sustainable offshore wind ecosystem.
Regional Opportunities
Industry representatives also highlighted that offshore wind opportunities should not be viewed solely within Türkiye’s domestic market.
Potential offshore wind developments in the Mediterranean region and the Middle East could create additional opportunities for Turkish shipyards, engineering firms, and industrial suppliers.
The Mediterranean Could Become a New Offshore Market
While Northern European countries have led offshore wind development for many years, the Mediterranean region is still considered an emerging market.
According to sector representatives, this situation could create new opportunities for countries with strong industrial capabilities such as Türkiye.
If offshore wind projects begin to expand in the Mediterranean basin, Türkiye’s industrial sector could play an important role in supporting regional offshore wind development.
On 14 January 2026, the United Kingdom awarded a total of 8.4 GW of offshore wind capacity under Allocation Round 7 (AR7), marking the largest offshore wind auction ever held in Europe.
The awarded capacity includes 8.2 GW of bottom-fixed offshore wind and nearly 200 MW of floating wind projects. The new capacity is expected to generate enough electricity to power approximately 10 million homes.
Record competition drives competitive pricing
AR7 was one of the most competitive offshore auctions ever held in Europe. A record 19 projects, representing a combined potential capacity of 24 GW, were eligible to bid.
The strong competition resulted in 2024 strike prices of:
£91.20/MWh in England and Wales
£89.49/MWh in Scotland
These levels are approximately 40% lower than the cost of building and operating new gas plants in the UK (£147/MWh) and nearly 30% lower than new nuclear plants (£124/MWh).
The 8.4 GW of new offshore wind capacity is estimated to save UK billpayers nearly £1.7 billion per year compared to gas generation.
CfD framework proves effective
The UK’s two-sided Contracts for Difference (CfD) mechanism once again demonstrated its ability to de-risk projects and provide long-term revenue visibility.
With a total budget of £1.79 billion — exceeding the initial £1.1 billion allocation — the UK Government secured additional capacity to enhance energy security and economic resilience.
Following the failed AR5 round in 2023 and limited new capacity under AR6, AR7 represents a significant turning point for offshore wind deployment in the UK.
AR7 winning projects
AR7 awarded support to six bottom-fixed offshore wind projects and two floating wind projects:
| Project | CfD Capacity (MW) | Owner(s) | Strike Price (2024) | Delivery (Phase 1) |
|---|---|---|---|---|
| Awel y Mor | 775 | RWE (60%), Stadtwerke München (30%), Siemens Financial Services (10%) | £91.2/MWh | 2030/31 |
| Dogger Bank South | 3000 | RWE (51%), Masdar (49%) | £91.2/MWh | 2030/31 |
| Norfolk Vanguard East | 1545 | RWE | £91.2/MWh | 2029/30 |
| Norfolk Vanguard West | 1545 | RWE | £91.2/MWh | 2028/29 |
| Berwick Bank | 1380 | SSE Renewables | £89.49/MWh | 2030/31 |
| Pentland (floating) | 92.5 | Copenhagen Infrastructure Partners (80%), Eurus Energy (10%), Hexicon (10%) | £216.49/MWh | 2029/30 |
| Erebus (floating) | 100 | TotalEnergies (80%), Simply Blue Energy (20%) | £216.49/MWh | 2029/30 |
The 192 MW awarded to floating wind projects marks another step toward commercial-scale floating wind deployment. Industry stakeholders emphasise the need for tailored support schemes, clear auction timelines for floating wind, and infrastructure investment in ports to sustain momentum.
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