Commitment Demonstrates New Jersey’s Leadership on Offshore Wind
TRENTON – Governor Phil Murphy recently announced the offshore wind solicitation schedule to meet the 7,500 megawatt (MW) offshore wind goal by 2035 and called upon the New Jersey Board of Public Utilities to take all necessary actions to implement the schedule. These projects will deliver the clean, renewable energy generation needed to meet the State’s goals of 50 percent renewable energy by 2030 and a 100 percent clean energy economy by 2050. Reaching 7,500 MW will generate enough electricity to power more than 3.2 million homes and meet fifty percent of the state’s electric power need, while supporting an offshore wind industry that will generate billions of dollars in investments in New Jersey’s future and create thousands of jobs.
“Several months ago, I committed the State of New Jersey to 7,500 MW of offshore wind by 2035, as a critical component of achieving 100 percent clean energy by 2050,” said Governor Murphy. “By announcing this planned solicitation schedule, we are demonstrating to our partners in industry and labor that we are committed to implementing this process in a thoughtful way that ensures economic growth for the New Jersey.”
“Not only was Governor Murphy the first to embrace 100 percent clean energy, he has been a national leader when it comes to recognizing the importance of offshore wind,” said New Jersey Board of Public Utilities President Joseph L. Fiordaliso. “New Jersey opened the largest single-state solicitation, is building a supply chain that will support projects up and down the east coast and is poised to double our offshore wind capacity. Guided by our new Energy Master Plan, offshore wind is a critical component in realizing the Governor’s vision of 100 percent clean energy by 2050 and ensuring our planet survives for future generations.”
The proposed schedule calls for the next 1,200 MW solicitation to be opened by September 2020, with an award made by second quarter of 2021. Setting a solicitation schedule through 2035 provides a crucial level of certainty for developers, original equipment manufacturers, and the supply chain.
To be responsive to the evolving market, the schedule has been developed to provide flexibility in terms of the amount being procured with each solicitation and the exact timeline. There are a number of factors that could influence the timing and the quantity to be procured including transmission solutions and development schedule, the status of additional lease areas, permitting, port readiness, establishment of a supply chain, workforce training, and cost trends.
Proposed OSW Solicitation Schedule through 2035
|Solicitation||Capacity Target MW||Issue Date||Submittal Date||Award Date||Estimated Commercial Operation Date|
|1||1,100||Q3 2018||Q4 2018||Q2 2019||2024|
|2||1,200||Q3 2020||Q4 2020||Q2 2021||2027|
|3||1,200||Q3 2022||Q4 2022||Q2 2023||2029|
|4||1,200||Q2 2024||Q3 2024||Q1 2025||2031|
|5||1,400||Q2 2026||Q3 2026||Q1 2027||2033|
|6||1,400||Q1 2028||Q3 2028||Q1 2029||2035|
In January 2018, Governor Murphy signed Executive Order No. 8, which directed NJBPU to fully implement the Offshore Wind Economic Development Act and begin the process of moving the state toward a goal of 3,500 MW of offshore wind by the year 2030. In response, New Jersey Board Public Utilities issued a solicitation for 1,100 MW of offshore wind and awarded Ørsted with the largest single state contract in June 2019. Ørsted expects this first project to be operational by 2024.
On November 19, 2019, Governor Murphy issued Executive Order No. 92 directing the New Jersey Board of Public Utilities, the New Jersey Department of Environmental Protection, and other state agencies with responsibilities arising under Offshore Wind Economic Development Act to take all necessary actions to promote the development of wind energy off the coast of New Jersey to meet a goal of 7,500 MW of offshore wind by the year 2035. This new order rescinded Paragraph 1 of Executive Order No. 8, which had established the previous goal of 3,500 MW of offshore wind.