New Jersey's third solicitation targets 4 GW to meet new offshore wind goals

By: Tom Russell 07/12/2022 NJBPU

General Windfarms

The New Jersey Board of Public Utilities has issued the draft solicitation guidance document (SGD) for New Jersey’s Third Offshore Wind Solicitation. The draft SGD also includes an updated offshore wind solicitation schedule.

The solicitation is scheduled to open in Q1 2023 with the bid submissions window closing in Q2 2023. The target capacity range for the solicitation is between 1.2- 4 GW with a commercial operations date for successful projects by 2030. The winners are to be announced in Q4 2023.

There are several new requirements proposed in this Third Solicitation, notably: offering an inflation adjustment mechanism; providing specific direction on New Jersey’s requirements for new or expanded supply chain facilities; providing minimum standards for the environmental and fisheries protection plans; setting the evaluation criteria weighting to 70% price and 30% non-price factors; and incorporating necessary information resulting from the Board’s historic State Agreement Approach transmission decision on October 26, 2022.

“I am pleased to announce the release of our Third Solicitation draft guidance document and the new offshore wind solicitation schedule for reaching Governor Murphy’s expanded goal of 11 GW of offshore wind capacity by 2040,” said NJBPU President Joseph L. Fiordaliso. “As we move toward a clean energy future it is vital that we fulfill the promise of offshore wind in combatting climate change and providing good paying jobs while continuing to provide a reliable schedule for achieving our ambitious goals.”

A virtual public stakeholder meeting is scheduled for 13 December 2022 to review the solicitation requirements and receive public comment. Instructions for how to participate are available here. Written comments will be accepted until 29 December.

The State has a goal of 11 GW of offshore wind capacity by 2040, set by Governor Murphy earlier this year. New Jersey's first solicitation took place in 2019, and saw the award to Ørsted’s 1,100 MW Ocean Wind project to be built 15 miles off the coast of Atlantic City. In 2021 it was followed by the combined award of 2,658 MW of offshore wind capacity to EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II projects, bringing the state’s total planned capacity to over 3,700 MW.

Further solicitations will follow in 2024, 2026, 2028 and 2030, each with a target capacity of 1.2 GW.

For more information on offshore wind farms worldwide, click here.

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