Offshore Wind in New Jersey

Offshore wind is a renewable energy technology that reduces the need for fossil fuel generation. By doing so, offshore wind can mitigate climate change impacts and support economic development for the New Jersey workforce. This renewable resource can be harnessed to generate clean, carbon-free electricity for the grid. Moreover, anchoring the offshore wind supply chain in New Jersey has the potential to create thousands of jobs and generate additional in-state economic opportunities.

Wind energy is a byproduct of the sun. The uneven heating of the atmosphere and earth’s surface creates wind from solar radiation. Wind energy is a sustainable resource that can supplement and even replace other forms of energy generation, such as coal and natural gas power plants. Fossil fuel-based energy generation is a contributor to atmospheric greenhouse gases that drive climate change. Increasing wind energy generation can mitigate climate change hazards and improve environmental and air quality at both regional and global scales by reducing greenhouse gasses emitted into the atmosphere.

Utility scale offshore wind energy projects are composed of many individual wind turbines organized into an array that optimize efficiency and minimize impacts to the environment and other maritime uses. As wind arrays operate, they create useable electricity that is transported to land for consumption using undersea transmission cables. Similar to many renewable energy technologies, the cost effectiveness and capacity potential of offshore wind has improved tremendously over the past few decades, making now a great time for New Jersey to develop its offshore wind portfolio.

The BPU supports the clean energy goals of Governor Murphy which target 7,500 MW of offshore wind energy by 2035 and will establish New Jersey as a leader in offshore wind development. Through strategic planning and intensive inter-agency collaboration at both state and federal levels, New Jersey can expand its renewable energy resources while simultaneously supporting workforce development throughout the offshore wind supply chain. By doing so, our residents will not only realize the environmental benefits, but also the socio-economic paybacks as well.

New Jersey Offshore Wind Solicitation #2

 
On June 30, 2021 the New Jersey Board of Public Utilities (NJBPU) awarded a combined 2,658 MW of offshore wind capacity to EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II, bringing the state’s total planned capacity to over 3,700 MW and moving New Jersey closer to Governor Phil Murphy’s goal of 7,500 MW of offshore wind by 2035 and 100 percent clean energy by 2050.  These awards were the result of the New Jersey Offshore Wind Solicitation #2 that was opened in September 2020.
 
In a unanimous vote, the Board awarded 1,510 MW of capacity to Atlantic Shores Offshore Wind and 1,148MW to Ocean Wind II. In addition to strong environmental and fisheries protection plans, each project has committed to investing in New Jersey’s burgeoning offshore wind industry by building new manufacturing facilities at the New Jersey Wind Port, utilizing the foundation manufacturing facility at the Port of Paulsboro, creating tens of thousands of jobs, and injecting billions of dollars in economic benefits into the State.
 
Combined, the two projects are estimated to create 7,000 full and or part time jobs across the development, construction and operational phases of the projects. This yields approximately 56,000 Full Time Equivalent job years, as some jobs will be shorter term and others will last for many years. They will also generate $3.5 billion in economic benefits and power 1.15 million homes with clean energy. As required by the solicitation, the project developers will also contribute $10,000 per MW to fund research initiatives and wildlife and fishery monitoring in the region – totaling $26 million that will be administered by NJBPU and the New Jersey Department of Environmental Protection through a robust stakeholder process.
   
The State’s comprehensive approach to offshore wind development aims to secure the best overall value for ratepayers while protecting the environment and commercial and recreational fishing interests. On track with the Governor’s solicitation schedule, the Board anticipates opening a third offshore wind solicitation for at least 1,200 MW in 2022.
 
For a fact sheet on the Second Solicitation Award, click here.

For more information on the NJBPU's solicitations, please visit, New Jersey Offshore Wind Program (nj.gov). 

Frequently Asked Questions

How does offshore wind energy work? from the U.S. Department of Energy

What is the Offshore Wind Supply Chain? Animated Infographic from the European Wind Energy Association

Top 10 things you didn’t know about offshore wind energy from the U.S. Department of Energy

Wind Turbines in Extreme Weather: Solutions for Hurricane Resiliency from the U.S. Department of Energy

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