Wind

New Jersey opens big new offshore wind round 3 amid whale death furore

Round 3 for 1.2-4GW comes as state and wider US sector faces backlash over strandings, which governor dismisses as politically motivated

. New Jersey Governor Phil Murphy.
. New Jersey Governor Phil Murphy.Foto: Phil Murphy campaign
  • Tim Ferry

US offshore wind pacesetter New Jersey opened up its round 3 solicitation for between 1.2GW and 4GW of capacity, adding to the 3.75GW the state already has under contract towards the mandate of 11GW by 2040.

“Offshore wind constitutes a crucial component of our journey to 100% clean energy by 2035, a benchmark that solidifies our position at the national forefront of climate action,” said governor Phil Murphy.

“In addition to safeguarding our communities from the worsening impacts of climate change, this emerging industry will generate thousands of good-paying jobs and economic opportunity across the state.”

The announcement comes as the industry faces growing opposition due to a spate of recent whale strandings. Over a dozen whales, mostly humpbacks, have washed up on area beaches, prompting charges that offshore wind geophysical surveys in the New York Bight wind energy area (WEA) and the state’s existing lease areas are to blame.

Murphy called such claims “unfounded” and “motivated not by a concern for our environment, but by their own political ideologies”.

The solicitation is the first under the state’s landmark transmission plan that will see over 6GW of offshore wind capacity connect to the grid at the Larrabee Tri-Collector Solution (LCS) at Sea Girt on the New Jersey Shore some 73 miles (117km) north of Atlantic City.

The $1bn LCS is the first grid project to leverage regional transmission operator PJM’s federally approved State Agreement Approach (SAA) development process that allows states to incorporate policy goals as an equal factor to market efficiency or reliability when proposing grid upgrades.

New Jersey’s round 3 application window will remain open from 6 March until 23 June, with New Jersey Board of Public Utilities (NJBPU), the agency charged with overseeing the state’s offshore wind programme, expecting to make its final selection by year’s end.

The announcement follows New York’s recently closed round 3 tender, with both states likely seeing projects based in the record-setting New York Bight WEA.
The 488,000-acres (1,975km2) WEA potentially holds some 10GW of capacity which could be largely consumed in both states’ round 3 tenders.

NJBPU requires that all bids include an economic development plan that furthers the state’s aspirations of becoming a regional hub and “strongly encourages use of the New Jersey Wind Port (NJWP) for project marshalling and for locating Tier 1 manufacturing facilities”.

Phase 1 of the $488m NJWP is slated to be commissioned this spring for marshalling of Orsted’s 1.1GW Ocean Wind 1 project this year. The Shell-EDF joint venture (JV) backing the 1.5GW Atlantic Shores project will also be staged from the port, where NJBPU noted that the state is interested in siting blade and tower manufacturers.

Terms for offshore wind renewable energy credits (OREC) are for 20 years and include both an annual escalator and inflation adjustment mechanisms.

In a nod to offtake contract challenges being seen in Massachusetts and Virginia, New Jersey warns OREC pricing will be on a pay-for-performance basis and that “ratepayers will not be responsible for any costs associated with non-performance” or cost overruns.

(Copyright)
Published 7 March 2023, 17:55Updated 7 March 2023, 18:40
AmericasUSNew JerseyPhil MurphyNJBPU