New Jersey BPU Okays OREC Funding Mechanism
The New Jersey Board of Public Utilities (NJBPU) has unanimously voted to adopt a proposed rule establishing the Offshore Wind Renewable Energy Certificate (OREC) funding mechanism for the state’s offshore wind energy.
OREC, part of Governor Phil Murphy’s clean energy agenda, establishes the process by which all offshore wind projects in New Jersey will be funded and how revenues will flow back to ratepayers.
“Today’s actions demonstrate my Administration’s focus on developing a robust offshore wind market and achieving 3,500 MW of offshore wind and 100 percent clean energy by 2050,” said Governor Murphy.
“The offshore wind program is a key component of the state’s strategic economic growth plan and a critical strategy to mitigate the impacts of climate change.”
The board made the first step towards meeting the 2030 target when it unanimously approved an order opening an application window for 1.1GW of offshore wind in September, which so far represents the nation’s single-state offshore wind solicitation.
BPU said it will also consider selecting an economic consultant to assist in the evaluation of the applications for the solicitation later this week.
“We are more committed than ever to fulfilling Governor Murphy’s bold vision of a robust offshore wind program and clean energy future and we look forward to receiving applications for our 1,100 MW solicitation before the end of the year,” said NJBPU President Joseph L. Fiordaliso.
“With today’s approval of an offshore wind funding mechanism, we anticipate significant benefits for the state at the best possible cost.”