RWE, Entergy Partner to define route to market for GoM offshore wind

April 4, 2023
The companies signed an MoU to jointly evaluate the delivery of clean energy from offshore wind to industrial customers in Texas and Louisiana.

Offshore staff

NEW ORLEANS  RWE and Entergy have agreed on a partnership to analyze the Gulf of Mexico (GoM) offshore wind market. The companies signed a memorandum of understanding (MoU) to jointly evaluate the delivery of clean energy from offshore wind to industrial customers in Texas and Louisiana.

Under this MoU, RWE and Entergy agree to assess five key areas to define an optimal route-to-market, including market demand for carbon-free energy for customers of Entergy Louisiana, Entergy New Orleans and Entergy Texas; resource economics; transmission analysis to ensure reliability; economic impacts extending to direct and indirect job creation; and curricula to prepare the workforce of the future.

"The existing Gulf of Mexico oil and gas supply chain, workforce and port infrastructure represent unique advantages to a potential offshore wind hub," said Sam Eaton, CEO of RWE Offshore Holdings LLC. "Working together with a local partner like Entergy can deepen our understanding of the next steps to strengthen these valuable assets and support a new, regional industry. RWE's early success acquiring two offshore wind lease areas in the US has positioned us well to continue preparing future markets for a robust clean energy economy powered by offshore wind."

RWE is a renewables developer in the US with 8 GW of operating capacity and a growth plan backed by a project pipeline of more than 24 GW of onshore wind, solar and battery storage. RWE is also expanding its global offshore wind activities in the rapidly growing market in the US. Through two offshore wind lease auctions in 2022, namely in the New York Bight and California, RWE has secured sites with the potential to host a total of about 3.9 GW (pro rata RWE) installed capacity in offshore wind.

Entergy serves about 3 million customers across its four-state territory and is accelerating its investments in renewable power generation. The company's existing renewable resources will triple over the next three years, with plans for as much as 17 GW of renewable capacity by the end of 2031. 

The GoM is next on the Bureau of Ocean Energy Management's offshore wind lease auction schedule with three lease areas proposed under the Pre-Sale Notice. The region has gained momentum following Louisiana Governor John Bel Edwards' Climate Action Plan, which includes a goal of 5 GW of offshore wind power by 2035.

In 2022 RWE, in collaboration with Greater New Orleans Inc., initiated a program to accelerate the engagement of Louisiana's supply chain to identify companies with transferable capabilities for offshore wind. Results from the supply chain collaboration are expected to be released industrywide later this year.

04.04.2023

Related

Photo 14338512 © Tebnad | Dreamstime.com
Offshore Wind
Photo 194428490 © Michal Bednarek | Dreamstime.com
Offshore Wind
Photo 84860058 © Ian Dyball | Dreamstime.com
Offshore Wind
Courtesy US Department of the Interior
Offshore Wind Boem