New Jersey Accelerates Schedule for Fourth Offshore Wind Solicitation

Planning & Permitting

December 8, 2023, by Adnan Memija

On 29 November, New Jersey Governor Phil Murphy directed the New Jersey Board of Public Utilities (NJBPU) to launch the fourth offshore wind solicitation in early 2024.

Illustration; Photo source: Atlantic Shores Offshore Wind

New Jersey’s fourth solicitation project awards are expected in early 2025.

The Governor’s action reaffirms the State’s commitment to achieving a 100 per cent clean energy economy by 2035, according to the press release from the Governor’s office.

“I have directed the BPU to take this action in recognition of the strong future of New Jersey’s offshore wind industry. New Jersey can – and will – continue to remain a burgeoning offshore wind development hub that attracts new projects and their accompanying economic and environmental benefits for generations to come,” said Governor Murphy.

The fourth offshore wind solicitation was planned to commence in the third quarter of 2024.

“These new projects, along with the Atlantic Shores Offshore Wind project awarded in 2021, will support tens of thousands of good-paying, family-sustaining jobs for New Jerseyans while protecting the quality of the air our children breathe and making good on the promise of affordable clean energy produced right here in the Garden State,” said Governor Murphy.

In September 2022, Governor Murphy signed a new executive order, increasing the state’s offshore wind target for 2040 from 7.5 GW to 11 GW.

So far, New Jersey held three auctions for offshore wind projects.

In 2019, the Garden State awarded the largest single offshore wind project in the country to Ørsted’s 1.1 GW Ocean Wind project which the developer canceled due to additional supplier delays impacting the project schedule.

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In 2021, the second solicitation resulted in the largest combined award of 2.6 GW of offshore wind capacity to EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II projects.

The third offshore wind solicitation was launched in March this year and it attracted proposals from companies such as RWE and National Grid, Shell New Energies and EDF Renewables North America, and Invenergy and energyRE. The winners are planned to be announced by the end of the year.

To date, the Board has awarded a total of 3.7 GW of offshore wind capacity.