New Jersey unveils 1.1GW solicitation winner

In: CorporateWindfarms
New Jersey Board of Public Utilities (NJBPU) has unveiled the winner of its 1,100 MW (1.1 GW) solicitation for offshore wind to be installed of the New Jersey coast. The solicitation was opened in September 2018 bidding develops could submit bids ranging from 300 MW to 1,1000 MW.

NJBPU received applications from three developers, with a total of fourteen bids. Applications where received from Atlantic Shores offshore wind, a joint venture between EDF Renewables & Shell, Equinor, and Ørsted.

Danish offshore wind giant Ørsted secured rights to the site with the
Ocean Wind project with support from New Jersey utility company Public Service Enterprise Group (PSEG). Located off the coast of Atlantic City, the project is poised to be New Jersey’s first commercial scale offshore wind farm. Subject to its final investment decision, the wind farm is expected to be completed by 2024.

Ørsted stated that it will work with PSEG non-utility affiliates, which will provide energy management services and potential lease of land for use in the project development and execution phase. PSEG, which serves 2.2 million electricity customers in New Jersey and has a long development partnership with Ørsted, has an option to become an equity investor in the project.

Ocean Wind is expected to supply more than half a million New Jersey homes with clean power. The project is also anticipated to create over 3,000 direct jobs annually through development and the three-year construction cycle. Ørsted is also proceeding with plans to establish an operations and maintenance base in Atlantic City that will provide permanent jobs during the 25+ years lifespan of the project.

Martin Neubert, Executive Vice President and CEO of Ørsted Offshore, says: “We’re delighted that New Jersey has chosen Ørsted to build the State’s first large-scale offshore wind farm. Since Ørsted developed the world’s first offshore wind farm in 1991, we have pushed the industry forward to help turn offshore wind into a large-scale and cost-competitive source of clean energy. We look forward to delivering Ocean Wind which will be the first offshore wind farm in the US to cross the 1GW mark and will contribute significantly to meeting Governor Murphy’s ambitious renewable energy goals.”

With today’s announcement, Ørsted has secured a US offshore wind build-out portfolio with a total capacity of approximately 2GW to be completed between 2022 to 2024. In addition, Ørsted is constructing two 6MW wind turbines for Dominion Energy’s
Coastal Virginia Offshore Wind project with a potential for a further 2GW offshore wind development.  

The State of New Jersey
recently released the Draft 2019 Energy Master Plan (EMP), which provides an initial blueprint for the total conversion of New Jersey’s energy profile to 100 percent clean energy by 2050, as directed by Governor Murphy’s Executive Order 28. The plan aims to meet or exceed the Global Warming Response Act greenhouse emissions reductions of 80 percent relative to 2006 levels by 2050.

It is being led by NJBPU, in collaboration with New Jersey Department of Environmental Protection, New Jersey Department of Transportation, the New Jersey Economic Development Authority, and the New Jersey Department of Community Affairs. The NJBPU is also in the process of launching additional solicitations of 1,200 MW in 2020 and 2022 as part of the '3,500 MW by 2030' goal.

The east coast of the US is a hub of activity for offshore wind, with many states vying to establish commercial scale projects and infrastructure to support the expansion of the technology. A number of states have issued Request For Proposal however there is only one offshore wind farm operating in US waters, the 30MW
Block Island project.

For more information on offshore wind developments in the US,
click here. You can also view projects worldwide on 4C Offshore's interactive map.

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