Oct 29 (Reuters) -

A Biden administration

auction

of offshore wind development rights in the Gulf of Maine

drew $21.9 million in high bids for half of the eight areas

offered, the U.S. Bureau of Ocean Energy Management said on

Tuesday.

Offshore wind developers Avangrid ( AGR ) and Invenergy

each walked away with two leases following one round of bidding.

They were among 14 companies that had been qualified to bid at

the sale.

Once developed, the lease areas have the potential to

power more than 2.3 million homes, according to BOEM.

The sale was viewed as a key test of industry appetite

for new investment after a year of high-profile setbacks. It was

also an opportunity for the sector to demonstrate interest in

the future of floating wind turbines, an emerging technology

required in the area's deep waters.

The auction was the last before U.S. President Joe

Biden, a Democrat, leaves office in January.

Former President Donald Trump, the Republican nominee in

next week's presidential election, has vowed to stop offshore

wind projects if he defeats Democratic Vice President Kamala

Harris in the Nov. 5 election.

Biden has made offshore wind a cornerstone of his plan

to decarbonize the electricity grid by 2035. But soaring costs,

supply chain challenges and a construction accident have slowed

development and cast doubt on his administration's target to

install 30 gigawatts of offshore wind this decade.

Avangrid ( AGR ) won two leases off the coast of Massachusetts,

where the company is developing other offshore wind projects.

Invenergy won a lease off the coast of Massachusetts and another

off the coast of Maine.

The U.S. Northeast is generally viewed as an attractive

market for offshore wind developers because many states have

passed laws mandating procurement of the resource to meet

climate change goals. Maine, for instance, has a goal to install

3 GW of offshore wind by 2040. Massachusetts is a leader in

offshore wind with a target of 5.6 GW by 2027.

Industry malaise has scuttled two offshore wind auctions

this year in the Gulf of Mexico and Oregon, regions without

offshore wind mandates.