Why offshore wind is facing headwinds

This podcast episode explores the lack of interest and failure of an offshore wind energy auction in the Gulf of Mexico. The potential advantages of the region, such as shallow water, warm temperatures, and existing oil and gas infrastructure, were not enough to attract bids for two sites. Experts attribute this lack of interest to factors such as the availability of cheaper solar power options, potential hurricane damage, low wind speeds, and the simultaneous ascending multiple round auction format. The high costs associated with building and connecting wind farms, along with supply chain disruptions and rising interest rates, have also posed challenges for developers. Despite these obstacles, federal subsidies have helped make offshore wind farms more viable. The lack of financial incentives, such as guaranteed prices for electricity, in the Gulf states of Louisiana, Texas, and Mississippi has also deterred investment. However, there is still optimism for the future of offshore wind in the Gulf of Mexico, with experts emphasizing the importance of state-level deals and careful consideration of the challenges and opportunities involved.