More offshore wind farms? New Jersey opens 4th round of bidding

TRENTON — New Jersey officials pushed forward with plans to expand the state's offshore wind power sector, despite recent slowdowns and setbacks in the industry.

The state Board of Public Utilities opened the fourth offshore wind power solicitation Tuesday, seeking proposals from companies for wind projects that could add 1.2 to 4 gigawatts of electricity production to the power grid.

New Jersey has already approved three offshore wind projects: Atlantic Shores Offshore Wind, Attentive Energy Two and Leading Light Wind. Each of the projects remains in the permitting process. The companies have not yet broken ground for the turbine bases in the Atlantic Ocean.

Other offshore wind projects - including Ørsted's two New Jersey projects and three offshore wind farm plans for New York - have been canceled or put on hold over the past 12 months. Companies say inflation, supply chain disruptions and high interest rates are contributing to the challenges facing the industry.

New Jersey's fourth offshore wind solicitation is part of Gov. Phil Murphy's effort to have 11 gigawatts of electricity produced for state consumers by 2040. Currently, most of the state's electricity production comes from gas-fired power plants and nuclear energy, according to the U.S. Energy Information Administration.

"This solicitation really demonstrates that we are committed to seeing the economic development that offshore wind is bringing to New Jersey and will continue to bring, as well as the clean energy that is so important for the residents of the state," Board of Public Utilities President Christine Guhl-Sadovy said Tuesday morning as the board approved opening the new bidding window.

Companies have until July 10 to submit proposals.

Precisely how offshore wind companies plan to move ahead amid rising costs and supply chain disruptions remains unclear. Some companies have rebid their projects in nearby states and proposed more expensive plans.

In New York, wind power developers faced another setback when a major turbine manufacturer announced plans to abandon its largest turbine design. The announcement prompted New York officials to pause three planned wind farm projects, according to Reuters.

"We've seen throughout the United States and the world that the economic landscape of offshore wind has changed since the pandemic" when many of the first offshore projects were put forward," Guhl-Sadovy said in an interview in mid-April. "That does not necessarily mean that projects cannot be competitive in today's environment, if we allow them the same opportunity as newer projects."

One of the primary problems facing the industry is a spike in the price of steel in recent years, said Tim Sullivan, executive director of the New Jersey Economic Development Authority. The agency operates the New Jersey Wind Port in Lower Alloways Creek, Salem County, where wind turbines will be manufactured and marshaled before being shipped out into the Atlantic Ocean.

"The price of steel was up about 65% compared to when Ørsted first bid its first projects," Sullivan told the Asbury Park Press in mid-April. "That is not something you can make up… That's one of the reasons why projects like Ørsted's and others across the eastern seaboard needed to kind of reboot after all those (financial) adjustments."

New Jersey lawmakers and agencies have provided a variety of tax incentives and programs to entice offshore wind developers to continue their projects. Sullivan pointed to the availability of the Wind Port, the New Jersey Offshore Wind Tax Credit Program and various job training partnerships with local colleges to help provide skilled labor to the new industry.

"Ultimately, this is about jobs for our kids and grandkids," he said. "This is a generation's worth of opportunity here."

Environmentalists said offshore wind power is also a key step in reducing fossil fuel consumption across New Jersey and moving toward carbon-free energy sources.

"The fourth solicitation will provide significant benefits to our families including reduced air pollution, improved public health, good local union jobs, energy independence, and combating climate change," Ed Potosnak, executive director of the New Jersey League of Conservation Voters, said in a news release.

The New Jersey Sierra Club, one of the state's leading environmental organizations, also applauded the Board of Public Utilities decision to open a new round of offshore wind power bidding.

"Each new round of solicitations brings us one step further away from dirty fossil-fuel energy sources that worsen climate change and pollute our air," New Jersey Sierra Club Director Anjuli Ramos-Busot said in an email. "Offshore wind is the future, and we thank the board and Gov. Murphy for their commitment to kick-starting this new industry to power our state with clean energy without sacrificing the well-being of our communities.”

Amanda Oglesby is an Ocean County native who covers education and the environment. She has worked for the Press for more than 15 years. Reach her at @OglesbyAPP, aoglesby@gannettnj.com or 732-557-5701.

This article originally appeared on Asbury Park Press: New Jersey seeks more ocean wind farms in new round of bidding