Despite facing setbacks with the withdrawal of Danish developer Orsted from two major offshore wind farm projects in New Jersey, the state remains committed to supporting and expanding the nascent industry. In a significant move, the state Board of Public Utilities voted on Friday to seek bids for a transmission facility, a crucial component in bringing power from ocean-based wind turbines to the onshore electrical grid. This decision not only demonstrates New Jersey’s determination to become a leader in the East Coast’s offshore wind industry but also serves as a vote of confidence in the potential of offshore wind.
Christine Guhl-Sadovy, the president of the board, stated, “Recent setbacks will not prevent us from moving forward with our commitment to offshore wind. Offshore wind is and continues to be the economic development opportunity of a generation and remains a key tool in climate change mitigation.” The board authorized a solicitation of proposals for an energy transmission system that would serve as an open-access transmission facility, either located in the Atlantic Ocean or onshore, facilitating the collection and delivery of offshore wind energy to the state’s electric transmission system. The system would consist of concrete structures and pipes through which power cables would pass, capable of servicing multiple offshore wind farms.
According to James Ferris, the deputy director of the board’s clean energy division, installing the project in a single effort would minimize environmental and community impacts by resulting in a single shore crossing. Eligible applicants for the project include power transmission developers and owners, as well as offshore wind developers.
The board’s vote comes in the wake of Orsted’s decision, the world’s largest offshore wind developer, to abandon its Ocean Wind I and II projects off the coast of New Jersey. The company cited reasons such as inflation, supply chain issues, and a failure to secure sufficient government subsidies as causes for the projects’ infeasibility. Orsted’s withdrawal had a significant impact on the offshore wind industry, giving opponents of wind farms hope and leading to promises of opposition to other pending projects, including one by Atlantic Shores, a collaboration between EDF and Shell.
However, while some celebrated Orsted’s exit, numerous community groups and the Southern New Jersey Development Council, a business group, reiterated their support for offshore wind projects. They view these projects as exemplifying responsible environmental stewardship and economic revitalization. Marlene Asselta, the president of the Southern New Jersey Development Council, stated, “New Jersey’s continued commitment to offshore wind power is a beacon of hope for a future where renewable energy takes center stage in our fight against climate change.”
Proposals for the transmission facility are due by April 3. Stay updated on the latest news from the 2024 campaign trail, exclusive interviews, and other political content by subscribing to our newsletter.
