LITTLETON, Colorado, Aug 31 (Reuters) - The weak showing at the first auction for offshore wind development rights in the Gulf of Mexico highlights the critical role that policymaking must play in making ambitious long-term climate goals compatible with current commercial realities.
SMALL SCALE IMPACTOne of the biggest faults of the Gulf of Mexico wind leases is the absence of a viable pathway for wind power generators to profitably sell their power to electricity providers given current market conditions.
In contrast to several utilities in the Northeast, which have state-level mandates to purchase certain volumes of power from offshore wind generators, the power systems covering Texas and Louisiana do not allow for similar power purchase agreements to be drawn up.
Currently, there is a policy planning chasm between the Gulf Coast's power market systems and the long-term strategies of that region's largest employers and tax payers.
But if legislators and corporate planners can recognise they may both gain from the emergence of a vibrant offshore wind energy sector that could cut power sector emissions and generate green hydrogen in abundance, there may be scope for closer collaboration and planning.
Persons:
Joe Biden's, Gavin Maguire, Miral
Organizations:
Reuters, Thomson
Locations:
LITTLETON , Colorado, Gulf, Mexico, United States, Joe Biden's U.S, Texas, Louisiana