New Jersey Offshore Wind Solicitations
On February 28, 2020, Governor Phil Murphy announced a proposed Offshore Wind (OSW) Solicitation Schedule for OSW projects that, when constructed, would enable New Jersey to meet its 7,500 MW Goal. At that time, the Governor called upon NJBPU to take all necessary actions to implement the OSW Solicitation Schedule.
In September 2020, the NJBPU issued its second OSW solicitation with a procurement target of 1,200 MW to 2,400 MW of OSW capacity. In June 2021, NJBPU awarded a total of 2,658 MW of OSW capacity to two projects, Atlantic Shores Offshore Wind, to be developed by Atlantic Shores Offshore Wind 1, LLC, a joint venture between EDF-RE Offshore Development, LLC and Shell New Energies US LLC, and Ocean Wind II, to be developed by Ørsted’s Ocean Wind II, LLC. The NJBPU’s first OSW solicitation in September 2018 resulted in an award in June of 2019 to Ocean Wind I, LLC for 1,100 MW.
To be responsive to the evolving market, NJBPU will continue to evaluate each forthcoming planned solicitation, as detailed in the OSW Solicitation Schedule. NJBPU will consider a number of factors that could influence the timing and the OSW capacity to be procured including, but not limited to, transmission solutions and development schedule, the status of additional lease areas, permitting, port readiness, establishment of a supply chain, workforce training, and cost trends.
First Solicitation
On June 19, 2019, the New Jersey Board of Public Utilities announced the winner of New Jersey’s first offshore wind solicitation to be Ørsted’s Ocean Wind 1,100 MW project. This project is the largest single-state procurement of offshore wind electricity generation capacity in the U.S. to date.
“Today’s historic announcement will revolutionize the offshore wind industry here in New Jersey and along the entire East Coast,” said Governor Murphy. “Building our offshore wind industry will create thousands of jobs, invite new investments into our state, and put us on a path to reaching our goal of 3,500 MW of offshore wind by 2030. This award is a monumental step in making New Jersey a global leader in offshore wind development and deployment.”
“Thanks to Governor Murphy’s leadership and his trust in the NJBPU to deliver upon the important promise of offshore wind, today we have taken another important step forward into our 100 percent clean energy future,” said NJBPU President Joseph L. Fiordaliso. “With today’s award of 1,100 MW of offshore wind, a safer, healthier future for New Jersey is looking brighter and closer than ever.”
More information about this historic award can be found by viewing the Board Order here. A press release regarding this award can be viewed here.
Second Solicitation
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 2023.
For a fact sheet on the Second Solicitation Award, click here.