New Jersey snatches US offshore wind crown with new nation-leading 11GW state target

Governor Phil Murphy's executive order raises state 2040 mandate by nearly 50%, surpassing neighbouring New York’s 9GW 2035 goal for wind-at-sea

. New Jersey Governor Phil Murphy.
. New Jersey Governor Phil Murphy.Foto: Phil Murphy campaign

New Jersey governor Phil Murphy has launched his state to the top of the US offshore wind leaderboard with an executive order raising its mandate to 11GW by 2040, besting neighbouring New York’s 2035 goal of 9GW.

Making the announcement, Murphy lauded the state's “renewed and strengthened commitment” to offshore wind development, asserting this was a testament to his administration's understanding that despite successes to date “there is always more that we can do to make New Jersey more sustainable while further advancing the state’s economic vitality”.

New Jersey under Murphy has emerged as an epicentre of the burgeoning US sector, having already procured 3.75GW of capacity in each of two separate tenders.

The 1.1GW Ocean Wind 1, procured in the state's first round in 2019, is being developed by a partnership of Danish global industry pacesetter Orsted and local utility PSEG, with construction expected to start next year.

In its round two tender last year, New Jersey awarded 1.5GW of capacity to Atlantic Shores, a joint venture between Shell New Energies and EDF Renewables, which expects to obtain a federal green light in 2023 with commissioning to follow in 2024.

These two projects alone are expected to generate $3.5bn in economic benefits while powering 1.15 million homes with clean energy.

Lastly, Orsted also won 1.14GW capacity in the round two tender for its Ocean Wind 2, which has yet to submit a construction and operations plan to the federal government.

New Jersey will likely draw new offshore wind capacity from leases awarded in the record-setting 6GW New York Bight auction in February, which saw six leases across 488,000-acres sell a total $4.37bn.

“Today’s announcements underscore our determination to not only double our efforts in the fight against climate change, but to ensure that every New Jerseyan can reap the benefits of transitioning to a clean energy economy,” said Jane Cohen, executive director of the governor’s office of climate action and the green economy, the lead agency managing state-wide renewable energy development.

New Jersey has also taken a leading role in supply chain development with the $460m New Jersey Wind Port (NJWP), the nation’s first greenfield offshore wind manufacturing, assembly, and staging port.

NJWP has attracted bids for space from multiple developers and turbine OEMs and last spring broke ground at its site in Salem County.

“Today’s announcement by governor Murphy demonstrates New Jersey’s commitment to offshore wind and workforce development for our green economy,” said Joseph Fiordaliso, president of BPU, which along with New Jersey Economic Development Authority is driving development of the local industrial supply chain.

Central to the state’s offshore wind rollout is its pioneering efforts towards planned transmission.

Last year, BPU in coordination with regional grid operator PJM Interconnection issued a request for proposals for a planned offshore transmission network capable of delivering much greater volumes of electric power to consumers.

The solicitation attracted 80 bids from around the country and the world. It was the first under amended federal rules that allow state policy goals to carry equal weight to cost and need when considering transmission upgrades.

“Today’s announcement, coupled with the forthcoming awards in the BPU’s first-in-the-nation offshore wind transmission solicitation expected next month, will accelerate the growth of a sustainable offshore wind industry that creates local union jobs and boosts the state’s economy,” said Janice Fuller, president, mid-Atlantic for renewable energy transmission provider Anbaric.

(Copyright)
Published 22 September 2022, 00:21Updated 16 October 2023, 11:02
AmericasNew JerseyPhil MurphyNew YorkNJBPU