California’s floating wind auction reveals ~40% differential in high bid/acre between two areas

published on 13 December 2022
Renewable Energy M&A. Renewable Energy Projects. California. Offshore wind M&A analysis. United States of America. December 2022-3b9ia

As a follow-up to the results of California’s maiden floating offshore wind tender, The Enerdatics research team has published a brief analysis of the drivers behind the differential in average high bids ($M)/acre for both Humboldt Bay and Morro Bay leases.

The analysis - represented in the above slide - highlights the major technical, site-specific constraints that have impacted the bids in the auction. The analysis is also symbolic of the development capabilities of the successful bidders, with global offshore wind major RWE taking the crown for the highest bid. Meanwhile, private equity (PE) firm Copenhagen Infrastructure Partners placed the second highest bid, underscoring another emerging trend observed in the offshore wind segment - PE firms taking direct stakes in early-stage, capital-intensive renewable projects, and then bringing on a partner to help develop the asset.

Floating wind pioneer Equinor, who just last month achieved first power from its 88 MW Hywind Tampen wind farm in the Norwegian North Sea, was also successful in the auction. Ocean Winds (a 50:50 JV between EDP Renewables and ENGIE) secured a site as well, and Invenergy was the only North American company to be awarded a lease in the round.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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