Ørsted and Public Service Enterprise Group (PSEG), a New Jersey-based utility, will enter into exclusive negotiations for PSEG to potentially become an equity investor in Ørsted’s Ocean Wind project.
Subject to negotiations toward a joint venture agreement, advanced due diligence and any required regulatory approvals, PSEG would acquire 25% of Ocean Wind.
Ocean Wind is a 1,100MW offshore wind project located 15 miles off the coast of Atlantic City. Subject to permitting and final investment decision, Ocean Wind is expected to be commissioned in 2024. The wind farm will feature GE Haliade-X 12 MW wind turbines.
Back in June, the Ocean Wind project, proposed by Ørsted with support from PSEG, was selected to negotiate a 20-year offshore wind renewable energy credit (OREC). Ørsted is also working on the project with the non-utility affiliates of PSEG, which are providing energy management services and potential lease of land for use in the project development.
New Jersey’s Governor Phil Murphy set out the goal of developing 3.5GW of offshore wind capacity by 2030 by signing the A-3723 – the Renewable Energy bill in May. Ocean Wind is the first project to be selected under the new legislation.