New Jersey’s Fourth Offshore Wind Solicitation Ends Without Award
Regulators for New Jersey’s offshore wind energy sector announced today that they will not be proceeding with an award for the fourth round wind solicitation due to “uncertainty driven by federal actions and permitting.” It makes the latest setback for the state which has seen multiple projects delayed and withdrawn despite a strong commitment by the state’s governor to renewable energy.
The New Jersey Board of Public Utilities reported it will not be proceeding with an award but that it is committed to working with Governor Phil Murphy to “build a successful offshore wind industry in New Jersey.” It reported that two of the three bidders in this round withdrew and that only the Atlantic Shores project proceeded to submit a best and final offer.
Last week, Shell reported it would be pausing its involvement in the Atlantic Shores project saying it did not meet the company’s financial criteria. Previously in 2024 Shell also sold its portion of a New England wind farm project as it says it is reevaluating its participation in the sector.
Shell is a 50-50 joint venture partner with EDF Renewables in Atlantic Shores. The project calls for a two-stage project that would provide 2.8 MW of energy to New Jersey with up to nearly 200 turbines. It would be about 9 miles off the New Jersey shore near Atlantic City and Sea Girt. The project gained approval from the Bureau of Ocean Energy Management (BOEM) in October 2024 for its construction and operations plan,
“A number of reasons led to this decision, notably Shell backing out as an equity partner in the Atlantic Shores project and backing away from the American clean energy market, as well as uncertainty driven by federal actions and permitting. The Board concluded that an award in New Jersey's fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time,” said Christine Guhl-Sadovy, President, New Jersey Board of Public Utilities.
The state’s fourth solicitation called for 1.2 to 4 gigawatts of offshore wind generation capacity. The application window closed on July 10, 2024. Reports indicate the Corio-Total-Rise joint venture Attentive Energy and RWE-National Grid venture Community Offshore Wind also submitted initially but later withdrew from the process.
Governor Murphy had also announced in May 2024 that the state would be accelerating its schedule for future offshore wind solicitations. The fifth round he reported would be brought forward to the second quarter of 2025. It was previously scheduled for the third quarter of 2026.
New Jersey has struggled to get its offshore wind industry going. Ørsted had the two most advanced projects, Ocean Wind, but canceled them in 2023. The state awarded additional projects in January 2024 with 1,342 MW to Attentive Wind Two and 2,400 MW to Leading Light Wind. Problems with securing a turbine supplier however prompted Leading Light Wind to twice delay its application with the NJBPU. In December 2024, it asked for a delay till May 2025.
The New Jersey projects have faced strong local opposition. Donald Trump supported the efforts using New Jersey to highlight his opposition to offshore wind energy. Last week he posted on social media that he hoped the Atlantic Shores project would be “dead and gone.” The new Trump administration has imposed a moratorium on new leases in federal waters and is expected to delay the review of pending permit applications.
Atlantic Shores issued a brief statement last week on January 30 saying it was still committed to New Jersey and delivering the state’s first offshore wind project.
Based on these developments, the New Jersey Economic Development Authority reported today it is accelerating strategic review of options and alternatives for the New Jersey Wind Port. The state was planning the development of a large port facility to support the construction operations for offshore wind. The port facility was to be located in Salem, New Jersey.