Aegir Insights’ Post

German lease price results look to have peaked last year. What does that mean for project viability? The results of #Germany's latest dynamic bidding offshore wind auction were published last week after several days of lease bidding. TotalEnergies and EnBW Energie Baden-Württemberg AG won a site each with lease prices totaling about 3 bnEUR and averaging 1.2 mEUR/MW, which is markedly lower than last year’s lease price. The biggest surprise, however, was RWE stepping out of the partnership with TotalEnergies for one of the winning sites. In Aegir Insights’ newly published analysis on the German offshore wind auction, clients can dive into: 🔹Key takeaways from the auction results 🔹Aspects challenging business cases in Germany 🔹Comparison of winning lease prices with previous auctions in Germany and other markets We compare winning lease prices across markets using Aegir Insights’ Lease Price Benchmarking tool, which clients can access on the Aegir platform. If you are interested in knowing more, reach out to us here: https://lnkd.in/egxcvDZB or contact VP Business Development Matthew Delany to schedule a meeting. #offshorewind #Europe #intelligence #bidanalytics #leaseprices

📢 BREAKING NEWS: #Germany #offshorewind auction results, using so-called ‘negative bidding’ after several developers offered to build the projects without receiving a state subsidy in 2.5 GW North Sea wind tender. The bidder Offshore Wind One GmbH was awarded the contract for the N-11.2 area at a bid value of €1.305 million and EnBW Offshore Projektgesellschaft 1 GmbH for the N-12.3 area at a bid value of €1.065 million/MW. This corresponds to payments of €1.9575 billion for area N-11.2 and €1.065 billion for area N-12.3. The average award value per gigawatt in 2023 was 1.8 billion euros. So far, the Federal Network Agency awarded bids totalling €12.6 billion for four sites with a total capacity of 7GW. Interesting to see how those costs would be passed on. Either to the supply chain - already struggling with inflation and surging input costs? Or to the electricity cost and consumers? TotalEnergies SE, RWE AG and Orsted A/S were among companies planning to participate in the next round of a German offshore wind auction

The Gulf of Mexico offshore wind auction on Tuesday ended after only two rounds with a single winning bid of $5.6 million on the Lake Charles lease area.   The auction saw a relative lack of competition, with no bids placed on Texas lease areas and a very low sole winning bid.   These results signal that developers may be discouraged to develop in the Gulf of Mexico due to the region's weak offshore wind policy and relatively low wind speeds, as well as inaccessible route-to-market in Texas. It seems that the strong supply chain capabilities developed by the region's large existing offshore oil and gas industry didn't create enough of a business case to generate competition amid these challenges. The outcome of yesterday’s auction may shift offshore wind planning efforts to other regions until states in the Gulf of Mexico create stronger incentive for developers to establish the offshore wind market in this new region.   In contrast Carbon Capture and Storage (CCS) projects along the Gulf Coast continue to accelerate, fueled by the IRA and BIL. With Equinor buying itself into the Talos / Chevron CCS project in Texas (onshore and offshore state waters) and the Texas General Land Office has just wrapped up its second lease round for CCS. Six leases raised an initial $130m (though the winners are currently unknown).   It is clear there is no one size fits all as we tackle decarbonization. Our specialists here at Xodus are addressing this challenge globally, so please reach out if you would like to discuss how we can help you with your US energy portfolio. Hillary Bright Elliot McDonald #Decarbonization #OffshoreWind #WeAreXodus #ThisIsWhatWeDo

The Gulf of Mexico offshore wind auction on Tuesday ended after only two rounds with a single winning bid of $5.6 million on the Lake Charles lease area.   The auction saw a relative lack of competition, with no bids placed on Texas lease areas and a very low sole winning bid.   These results signal that developers may be discouraged to develop in the Gulf of Mexico due to the region's weak offshore wind policy and relatively low wind speeds, as well as inaccessible route-to-market in Texas. It seems that the strong supply chain capabilities developed by the region's large existing offshore oil and gas industry didn't create enough of a business case to generate competition amid these challenges. The outcome of yesterday’s auction may shift offshore wind planning efforts to other regions until states in the Gulf of Mexico create stronger incentive for developers to establish the offshore wind market in this new region.   In contrast Carbon Capture and Storage (CCS) projects along the Gulf Coast continue to accelerate, fueled by the IRA and BIL. With Equinor buying itself into the Talos / Chevron CCS project in Texas (onshore and offshore state waters) and the Texas General Land Office has just wrapped up its second lease round for CCS. Six leases raised an initial $130m (though the winners are currently unknown).   It is clear there is no one size fits all as we tackle decarbonization. Our specialists here at Xodus are addressing this challenge globally, so please reach out if you would like to discuss how we can help you with your US energy portfolio. Hillary Bright Elliot McDonald #Decarbonization #OffshoreWind #WeAreXodus #ThisIsWhatWeDo

#Australia's first award of offshore wind sites was announced yesterday when 12 projects totaling 25 GW received feasibility licenses. This welcomes a range of international developers to this nascent #offshorewindmarket, including CIP, Corio, Iberdrola, Ocean Winds, RWE and Ørsted. Six of the 12 projects are ready to move forward with development, while another six licenses are subject to First Nations consultation before final approval. The award concludes a more than 15-month process from application start to award – a timeline that the Australian government needs to greatly reduce if the other areas planned for offshore wind development should contribute significantly to the gradual coal phase-out until 2038. However, the Gippsland area stands out compared to the other five declared or proposed areas as it is larger and has attracted a lot of developer interest leading to competition and overlapping license applications, which has prolonged the process. So, what’s next for the projects in #Gippsland? 🔹While six projects will need to finalize the First Nations consultations, expectations are that all 12 projects will now move forward to assess the feasibility of the awarded site. This includes site investigations, such as wind measurements and seabed surveys, as well as obtaining a commercial license and a transmission and infrastructure license to get permission to construct and operate an offshore wind farm and undersea cables. 🔹The next milestone for these projects could be the first offtake auction in the state of #Victoria, which is expected to kick off by end of 2024. However, some projects might be further along than others in terms of development and readiness to bid in the auction. 🔹The Star of the South project, developed by Copenhagen Infrastructure Partners for over six years, looks to be leading the pack in terms of maturity, but other projects could be close followers such as the neighboring project Great Eastern by Corio Generation. --- Aegir Insights’ subscribing clients can dive deeper into developments and opportunities in the Australian offshore wind market with our market reports on the region. Reach out to Senior Analyst Simon Engfred Schlichting or VP Business Development Matthew Delany for information on our market intelligence products. #offshorewind #marketintelligence #auctionintelligence #APAC

#Australia's first award of offshore wind sites was announced yesterday when 12 projects totaling 25 GW received feasibility licenses. This welcomes a range of international developers to this nascent #offshorewindmarket, including CIP, Corio, Iberdrola, Ocean Winds, RWE and Ørsted. Six of the 12 projects are ready to move forward with development, while another six licenses are subject to First Nations consultation before final approval. The award concludes a more than 15-month process from application start to award – a timeline that the Australian government needs to greatly reduce if the other areas planned for offshore wind development should contribute significantly to the gradual coal phase-out until 2038. However, the Gippsland area stands out compared to the other five declared or proposed areas as it is larger and has attracted a lot of developer interest leading to competition and overlapping license applications, which has prolonged the process. So, what’s next for the projects in #Gippsland? 🔹While six projects will need to finalize the First Nations consultations, expectations are that all 12 projects will now move forward to assess the feasibility of the awarded site. This includes site investigations, such as wind measurements and seabed surveys, as well as obtaining a commercial license and a transmission and infrastructure license to get permission to construct and operate an offshore wind farm and undersea cables. 🔹The next milestone for these projects could be the first offtake auction in the state of #Victoria, which is expected to kick off by end of 2024. However, some projects might be further along than others in terms of development and readiness to bid in the auction. 🔹The Star of the South project, developed by Copenhagen Infrastructure Partners for over six years, looks to be leading the pack in terms of maturity, but other projects could be close followers such as the neighboring project Great Eastern by Corio Generation. --- Aegir Insights’ subscribing clients can dive deeper into developments and opportunities in the Australian offshore wind market with our market reports on the region. Reach out to Senior Analyst Simon Engfred Schlichting or VP Business Development Matthew Delany for information on our market intelligence products. #offshorewind #marketintelligence #auctionintelligence #APAC