New Jersey’s energy landscape recently faced a hurdle when Ørsted abandoned plans for a significant offshore wind development. However, the state has swiftly countered this setback with an impressive addition of 3.7 GW to its renewable energy portfolio.
Launching The Next Generation of Offshore Wind Farms
The Board of Public Utilities (BPU) in New Jersey has come through with its promise, initiating new contracts for offshore wind power well ahead of the anticipated 2024 solicitation. Partnerships with Leading Light Wind and Attentive Energy Two pledge to construct what will stand as two of the nation’s most formidable offshore wind farms.
Leading Light Wind Sets Sail for Clean Energy
With an impressive capacity of 2.4 GW and a location situated over 40 miles from the New Jersey coast, Leading Light Wind projects to supply clean energy to over a million homes. Backed by US-based developers Invenergy and energyRe, it marks a historic win for domestic competition in the sector. Construction plans are slotted to commence in 2028, eyeing a 2032 completion date.
Attentive Energy Two’s Commitment to Sustainability
The 1.34 GW Attentive Energy Two project aspires to provide clean power to upwards of 650,000 homes and will anchor itself 42 miles offshore. TotalEnergies, alongside Rise Light & Power and Corio Generation, reinforces New Jersey’s ambitious aims for a clean energy future by 2035. Specific timelines for construction are not yet disclosed, but the commitment seems firm.
Contractual Safeguards to Prevent Delays
To sidestep issues that led to the cancellation of Ørsted’s offshore initiatives, the BPU has instituted revised contractual measures. These include an inflation adjustment cap, the imposition of performance bonds to ensure project completion, and a requirement for projects to post security deposits.
Assuring the financial viability of these projects, TotalEnergies disclosed a guaranteed level of income through Offshore Wind Renewable Energy Certificate (OREC) revenues. A fixed initial price of $131 per MWh, with subsequent annual increases, will back the project’s profitability after its activation.
Boosting Local Manufacturing and Economic Growth
An additional boost comes in the commitment from both ventures to source wind turbine monopiles from EEW’s local plant in Paulsboro, New Jersey. Integrating domestic manufacturing provides dual advantages by lowering costs and positioning the projects for additional tax credits through the Inflation Reduction Act.
New Jersey’s Offshore Wind Ambitions Still Sailing High
With a goalpost of 11 GW from offshore wind by 2040, New Jersey is not just recovering but accelerating its offshore wind journey. The state anticipates igniting its fourth offshore wind solicitation early this year, showcasing steadfast commitment to sustainable growth and its position at the forefront of renewable energy progress.
