US government to sell wind farm leases

The US government plans to sell wind farm leases off the coasts of Massachusetts, Rhode Island and Virginia, which would be the first time it would sell competitive leases for wind energy on the outer continental shelf, according to officials.

The leases for the two areas, totaling over 430 square miles, would be sold next year, according to the Interior Department and its Bureau of Ocean Energy Management. One area for lease is about 10 miles off the shore of Rhode Island while the other is about 27 miles off the southern part of Virginia.

According to officials, each area could be developed to generate enough electricity to power 700,000 homes.

The leases would be auctioned online, probably in the first half of 2013, the US Department of the Interior, the federal agency overseeing the sales, said.

The auctions would determine which energy company, utility or entrepreneur got to build huge wind turbines and reap clean electricity from them in designated areas in the Atlantic Ocean. Costs are expected to run into billions.

Though the US has no offshore wind farms today, these can be seen off several European coasts and are planned in Chinese waters.