The New Jersey Board of Public Utilities (NJBPU) has announced an accelerated timeline for its fifth offshore wind solicitation, moving it to the second quarter of 2025 from the third quarter of 2026. Additionally, NJBPU has finalized a $125 million settlement with Orsted following the company's abrupt cancellation of the Ocean Wind projects last fall. The Board also decided to pause the current planning process for the Second State Agreement Approach, a coordinated planning agreement between NJBPU and PJM on offshore wind transmission, due to FERC’s recent Order 1920 on regional grid transmission.
Doug O’Malley, Director of Environment New Jersey, commented on these developments: “The acceleration of the fifth offshore wind solicitation from NJBPU clearly shows there is an intense interest to build offshore wind off the Jersey Shore. The solicitation process has provided clarity and certainty for offshore wind in New Jersey. By bumping up NJ5 by more than a year, it shows that the interest in building offshore wind off the Shore is only intensifying."
O'Malley emphasized that "offshore wind remains the best strategy for the state to generate clean, renewable energy and reduce climate pollutants from fossil fuels." He noted that "last year was the warmest year on record," underscoring the urgency for New Jersey to advance its offshore wind initiatives as other states have done.
Regarding Orsted's settlement, O'Malley stated: “The settlement from Orsted after they abruptly pull[ed] the plug on the Ocean Winds project at least proves there is one good mitzvah that will come from that decision. The clawback settlement of $125 million from Orsted – while not near the amount they owed to New Jersey – is a good downpayment on expanding the offshore wind supply chain." He added that although Orsted owed more, it was uncertain if they could have been compelled to pay in full.
O'Malley also highlighted concerns about Orsted’s Wind Energy Area off Atlantic City: "The potential for offshore wind is still as strong as [it was] when Orsted cancelled their project last fall...Orsted should move to sell their lease as quickly as possible – there is clear interest from other developers in [the] area that can power hundreds of thousands of homes with clean energy."
Commenting on FERC's Order 1920 and its impact on NJBPU's plans, O'Malley remarked: "FERC clearly is putting a huge thumb on [the] scale on moving forward with making a more resilient and faster electric grid with Order 1920. This is [a] best kind of pause for NJBPU for [the] Second Special State Agreement (SSA). FERC is moving aggressively to deal with one of [the] biggest challenges to clean energy across [the] country – getting more clean energy projects onto [the] grid."
He concluded by acknowledging NJBPU’s partnership with PJM: "NJBPU’s SSA partnership with [the] PJM electric grid was groundbreaking – and incorporating [the] FERC order – and issuing a pause – make absolute sense.”
