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New Jersey receives bids for 1,100 MW of offshore wind

By Michelle Froese | January 2, 2019

The New Jersey Board of Public Utilities (NJBPU) received bids from three developers late in December, which were in response to its September 20, 2018, solicitation for 1,100 MW of offshore wind. This solicitation is the largest single state solicitation to date.

New Jersey

In February of 2018, the NJBPU adopted an Order directing staff to take prepare for the solicitation of 1,100 MW of offshore wind. This is the largest single-state solicitation to date.

“The Board is extremely excited to receive these solicitations. New Jersey has regained its place as a leader when it comes to clean, renewable energy and offshore wind power is a major component in taking us there,” said NJBPU President Joseph L. Fiordaliso. “We are one giant step closer to fulfilling Governor Phil Murphy’s vision of 3,500 MW of offshore wind power by 2030.”

At a special board meeting on December 20, the Board selected an economic consultant to assist in the evaluation of the applications and has sent the award recommendation to the New Jersey Department of the Treasury. Upon review and approval, the winning bidder and contract will be announced publicly. Board staff, with the support of the consultant, will review and evaluate the applications before providing a recommendation to the Board.

The review will consider the requirement under the Offshore Wind Economic Development Act (OWEDA) that applicants must demonstrate “positive net-economic and environmental benefits for the State.” Guidance documents were provided to help developers calculate net economic benefits of proposed projects. A Board decision is anticipated in spring of 2019.

On January 31, 2018, Governor Murphy signed Executive Order No. 8 directing the NJBPU to fully implement OWEDA and begin the process of moving the state toward its 2030 goal of 3,500 MW of offshore wind energy generation after an eight-year delay.

On February 28, 2018, the Board adopted an Order directing staff to take actions to implement Executive Order No. 8, including preparing for the solicitation of 1,100 MW of offshore wind, as well as initiate a rule-making proceeding for the funding mechanism.

In October, representatives from the NJBPU reviewed the solicitation and the required submission procedures for parties interested in submitting proposals for offshore wind projects. Prospective applicants have had additional opportunities since to ask questions regarding the application process and information requested in the guidance documents provided by the NJBPU.

Governor Murphy has asked the Board to consider two additional solicitations of 1,200 MWs in 2020 and 2022. Based upon average residential household power usage, the Board estimates that 1,100 MW of offshore wind will serve between 350,000 and 600,000 households annually. It is estimated that the 3,500 combined MW will supply power for 1.1 million to 2 million households annually.


Filed Under: News, Offshore wind, Projects
Tagged With: newjerseyboardofpublicutilities
 

About The Author

Michelle Froese

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