For Immediate Release:	Contact: Peter Peretzman
Date: 02/28/2022	609-900-5626

Trenton, NJ—The New Jersey Board of Public Utilities today announced it has updated the timeline for issuing the Third Solicitation for New Jersey’s Offshore Wind development. The Board will release the Third Solicitation by January 2023, rather than the previously anticipated September 2022.

 

The updated timeline complements the first-of-its-kind coordinated transmission solution to get offshore wind generated energy to New Jersey customers.  The transmission solution will be selected from 80 projects submitted by transmission developers for consideration in the State Agreement Approach (SAA) process.

 

The SAA is a collaboration between the NJBPU and PJM Interconnection, LLC (PJM) that enables New Jersey’s offshore wind goal to be incorporated into the PJM transmission planning process. The robust response provides considerable options for the potential selection of a project or projects that would provide the most efficient, cost-effective, and environmentally protective transmission solution. The updated schedule allows for the SAA process to be completed and the outcome incorporated into the Third Solicitation guidance documents.

 

In addition, the updated schedule will allow the developers who successfully bid for new lease areas in the New York Bight time to further plan the investigation and subsequent development of their lease areas. This will be key to receiving proposals that will be in the best interest of New Jersey’s ratepayers, thus creating a strong pathway to a successful solicitation and off-shore wind program.

 

Solicitations 4 and 5 will remain on schedule as previously announced. The solicitation schedule will be as follows:

 

Solicitation	Capacity Target (MW)	Capacity Awarded (MW)	Issue Date	Submittal Date	Award Date	Estimated COD
1	1,100	1,100	Q3 2018	Q4 2018	Q2 2019	2024-25
2	1,200 – 2,400	2,658	Q3 2020	Q4 2020	Q2 2021	2027-29
3	1,200		Q1 2023	Q2 2023	Q4 2023	2030
4	1,200		Q2 2024	Q3 2024	Q1 2025	2031
5	1,342		Q2 2026	Q3 2026	Q1 2027	2033
Total Awarded + Target	7,500

 

“Expanding New Jersey’s offshore wind industry is a vital step forward in creating a stronger, fairer, and greener New Jersey,” said Governor Murphy. “A clean energy future is critical for our economy and our environment. The updated timeline ensures that we are paving a strong pathway for the future of offshore wind development.”  

 

“New Jersey remains 100 percent committed to offshore wind development and this update to our schedule takes into account two exciting and important milestones in offshore wind in our region,” said NJBPU President Joseph L. Fiordaliso. “With 80 proposals for transmission solutions submitted in response to the SAA solicitation, adjusting our timeline to allow for the selection of the optimal transmission solution will inform our next solicitation for offshore wind projects. Coupled with the new lease areas in the New York Bight, developers will now have ample time to put together thoughtful and cost effective proposals.” 

 

In January, NJBPU and PJM Interconnection (PJM) filed for approval of an Agreement to implement New Jersey’s groundbreaking offshore wind transmission grid solicitation from the Federal Energy Regulatory Commission (FERC).  The Agreement provides a pathway for New Jersey to advance the first-of-its-kind offshore wind transmission solution as New Jersey implements its initiative to reach Governor Murphy’s goal of 7,500 MW of offshore wind energy by 2035.  The State Agreement Approach has the potential to serve as a national model for transforming the way state clean energy priorities are incorporated into the regional transmission planning process.

 

Once accepted by FERC, the Agreement will allow NJBPU to select one or more of 80 different proposals submitted by developers. Each proposal includes ready-to-build offshore wind transmission solutions to deliver offshore wind energy to the existing power grid. The SAA provides protection for New Jersey ratepayers, while also providing a pathway for an equitable future expansion of the offshore wind grid to achieve national goals.

NJBPU and PJM are currently reviewing the offshore wind transmission applications filed, with a determination expected later in 2022 on which applications, if any, will be approved.

The Bureau of Ocean Energy Management (BOEM) held a wind energy auction on February 23, 24 and 25, 2022, for more than 480,000 acres in the New York/New Jersey Bight. The auction allowed offshore wind developers to bid on six lease areas – the most areas ever offered in a single auction. Bids for all six areas totaled $4.37 billion. Full details are available here.

 

Developing New Jersey’s offshore wind resources is a core strategy of Governor Murphy’s Energy Master Plan, which identifies the most ambitious and cost-effective ways of reaching 100 percent clean energy by 2050. Since taking office in 2018, the Murphy Administration has led a concerted effort across State government to bolster this transition while focusing on jobs and economic growth. This includes developing the NJ Wind Port in Salem County, establishing a WIND Institute to coordinate workforce development and research and development in offshore wind, and a $250 million investment in the Port of Paulsboro for turbine component manufacturing.

 

The State’s comprehensive approach to offshore wind development aims to secure the best overall value for ratepayers while protecting the environment and commercial and recreational fishing interests. The Third Solicitation will continue New Jersey’s thoughtful and intentional approach to developing offshore wind while establishing the State as the offshore wind supply chain hub.

 

In 2019, New Jersey made history by awarding the largest single offshore wind project in the country to Ørsted’s 1,100 MW Ocean Wind project to be built 15 miles off the coast of Atlantic City. New Jersey again made history in 2021 with the largest combined award of 2,658 MW of offshore wind capacity to EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II projects, bringing the state’s total planned capacity to over 3,700 MW and moving New Jersey closer to Governor Phil Murphy’s goal of 7,500 MW of offshore wind by 2035.

 

About the New Jersey Board of Public Utilities (NJBPU)

NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.  

 

About New Jersey’s Clean Energy Program (NJCEP)

NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.