Authorities in New Jersey have several new proposals to mull for the development of wind farms in coastal waters.
After the close of its third round of submission, the New Jersey Public Utilities Bureau will now review proposals from hopefuls seeking an early stake in the development of offshore energy as the state presses plans boosted by federal aid.
New proposals include a plan by Leading Light Winds, a partnership between developer Invenergy and New York-based co-developer energyRe, for a 2,400-megawatt wind farm off state waters in the New York Bight, in addition to a joint venture between Germany-based RWE and New York-based National Grid for a wind farm 40 miles off the coast of Long Beach Island, New Jersey.
Bloomberg News
Atlantic Shores Offshore Wind, a joint venture between Shell New Energies and renewable energy developer EDF-RE Offshore Development, is seeking approval for three wind farms located 10 to 20 miles off of Atlantic City, its second such pitch.
New Jersey has so far approved two offshore farms, one of which is a partnership between Atlantic Shores Offshore Wind and Danish energy company Ørsted for the development of another series of wind farms off of Atlantic City.
The second project approved is a $1.6 billion venture by Ørsted, also along Atlantic City’s coastline, slated for completion in 2024, which recently received project approval from the U.S. Bureau of Ocean Energy Management.
That decision clears the way for construction to begin on what is expected to be New Jersey’s first operational offshore wind farm, with the potential to power 500,000 homes according to Ørsted.
Ørsted’s plan, as well as the state push for wind energy development, have been the target of civil and political complaints among minority statehouse Republicans.
Opponents have cited the impact visible wind farms could have on property values as well as officially discredited fears connecting a growing number of marine mammals deaths in New Jersey waters to surveying activities for the wind farms.
A part of the financing package behind the state’s agreement with Ørsted has also been challenged in a recent lawsuit; on July 27, two community groups opposed to offshore wind farm development sued Ørsted in New Jersey Superior Court, targeting an estimated $1 billion in tax breaks the company would receive through a measure redirecting federal renewable energy tax credits. The measures narrowly passed the state legislature along party lines last month without the support of minority statehouse Republicans.
Ørsted has yet to issue a statement on the lawsuit.
Democratic State Senate President Nicholas Scutari and Democratic Assembly Speaker Craig Coughlin issued a joint statement following announcement of the new bids, saying the legislature still had some concerns regarding the “BPU’s approach on the offshore wind projects.”
“There are still many unanswered questions about the economic impact these projects will have on ratepayers as well as potential impacts to one of our state’s largest economic drivers, tourism at the shore. The BPU should be able to share these impacts with the communities affected and the legislature before moving forward with these new offshore projects.”
Gov. Phil Murphy has sought to take advantage of federal incentives in the Inflation Reduction Act promoting renewable energy development, touting the industry’s potential as a major employer and revenue driver into the future.
In January, the state sold $160 million in taxable lease revenue bonds through the New Jersey Economic Development Authority in what was one of the largest wind energy bond sales in United States municipal history, green bond expert Andrew Teras, director of municipal research at Breckinridge Capital Advisors, said at the time.
The bonds were secured by state lease payments to the authority to support the development of a port outfitted for the manufacturing and shipping of windmill components in Salem County.
The Murphy administration hopes to have 11,000 megawatts of electricity, enough to power almost 6 million homes, produced by offshore wind farms by 2040.