US offshore wind pacesetter New Jersey enlarges auction to 4GW to 'fulfill sector promise'
Draft solicitation rules will require bidders to leverage wind port and transmission spend to solidify state's 'hub' role in line with 2040 capacity target raised to 11GW
The New Jersey Board of Public Utilities’ (NJBPU) draft document, released today (Tuesday), revealed multiple changes in the solicitation requirements, including increased supply chain and grid investments aimed at advancing governor Phil Murphy’s goal to develop the state into a “hub for offshore wind”.
“As we move toward a clean energy future, it is vital that we fulfill the promise of offshore wind in combatting climate change and providing good paying jobs while continuing to provide a reliable schedule for achieving our ambitious goals,” said NJBPU president Joseph Fiordaliso.
The draft rules include an inflation adjustment mechanism as well as new requirements for environmental and fisheries protection plans, with bid evaluation criteria to be weighted 70% on price and 30% on ‘non-price’ factors.
New Jersey has taken the lead in offshore wind development in the US, spearheading giga-scale development with the selection of the 1.1GW Ocean Wind 1 project in 2019, the largest project award at the time, and has 3.75GW of sea-based wind power under contract, including the 1.15GW Ocean Wind 2 and the 1.5GW Atlantic Shores, both selected in round two.
The Larrabee Tri-Collector Solution selected under the SAA procurement will see over 6GW of offshore wind capacity sharing the same point of interconnection, which the round three rules require to be “fully utilised” by applicants.
Phase 1 of the NJWP is being expedited for an early 2023 completion, ready for staging the Ocean Winds 1 project under development by a joint venture (JV) of Danish developer Orsted and local utility PSEG.
When completed in 2026, the NJWP will be the US’ largest purpose-built offshore wind port, with the Shell-EDF JV advancing Atlantic Shores also contracted for marshalling out of the port for its flagship project, and Vestas and GE are both in talks for manufacturing capacity.
New Jersey’s round three tender will kick off early in 2023, with NJBPU expecting to make a selection by year-end. The size of future rounds will depend on how much capacity is awarded in round three, with the state reserving the right to award capacity either above or below stated targets.
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