Translator Disclaimers
For Immediate Release: Contact: Peter Peretzman
Date: 12/06/2022 609-900-5626

 

NJBPU Issues Draft Guidance Document for Third Offshore Wind Solicitation; Updates Solicitation Schedule for 11 GW Goal

 

 

Trenton, NJ—The New Jersey Board of Public Utilities has issued the draft solicitation guidance document (SGD) for New Jersey’s Third Offshore Wind Solicitation. The release of the draft SGD will provide for stakeholder engagement on the design of the State’s Third Solicitation and provides information necessary to enable potential bidders to assess the rules and requirements of the forthcoming solicitation.

 

There are several new requirements proposed in this Third Solicitation, notably: setting the solicitation target range from 1,200 MW to 4,000 MW; offering an inflation adjustment mechanism; providing specific direction on New Jersey’s requirements for new or expanded supply chain facilities; providing minimum standards for the environmental and fisheries protection plans; setting the evaluation criteria weighting to 70% price and 30% non-price factors; and incorporating necessary information resulting from the Board’s historic State Agreement Approach transmission decision on October 26, 2022. 

 

The draft SGD also includes an updated offshore wind solicitation schedule. The new schedule reflects the State’s expanded goal of 11 GW of offshore wind capacity by 2040, set by Governor Murphy earlier this year. The new solicitation schedule provides developers and the offshore wind supply chain with certainty on the State’s plan to reach its offshore wind goal and will spur increased investment in New Jersey’s offshore wind industry.

 

“I am pleased to announce the release of our Third Solicitation draft guidance document and the new offshore wind solicitation schedule for reaching Governor Murphy’s expanded goal of 11 GW of offshore wind capacity by 2040,” said NJBPU President Joseph L. Fiordaliso. “As we move toward a clean energy future it is vital that we fulfill the promise of offshore wind in combatting climate change and providing good paying jobs while continuing to provide a reliable schedule for achieving our ambitious goals.”  

 

The updated schedule is as follows:

Solicitation

Minimum 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 - 4,000

 

Q1 2023

Q2 2023

Q4 2023

2030

4

1,200**

 

Q3 2024

Q4 2024

Q2 2025

2032

5

1,200**

 

Q3 2026

Q4 2026

Q2 2027

2034

6

1,200**

 

Q3 2028

Q4 2028

Q2 2029

2036

7

1,200**

 

Q3 2030

Q4 2030

Q2 2031

2038

Total Awarded + Target

11,000

 

 

 

 

*The Board may award projects above or below the target

**To be adjusted based on previous solicitation awards

 

The State’s comprehensive approach to offshore wind development aims to secure the best overall value for ratepayers while growing economic opportunity and 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.

 

A virtual public stakeholder meeting is scheduled for December 13, 2022 to review the solicitation requirements and receive public comment. Instructions for how to participate are available here. Written comments will be accepted until December 29. 

 

Developing New Jersey’s offshore wind resources is a core strategy of Governor Murphy’s clean energy initiatives. Since taking office in 2018, Governor Murphy has led a concerted effort across State government to bolster a transition while focusing on jobs and economic growth. This includes developing the nation’s first purpose-built offshore wind port, the New Jersey Wind Port, in Salem County, the Port of Paulsboro for turbine component manufacturing, and supporting offshore wind workforce development, research and innovation.

 

In 2019, New Jersey made history by awarding the largest single offshore wind project in the country to Ørsted’s 1.1 GW 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 2.6 GW of offshore wind capacity to EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II projects. To date the Board has awarded a total of 3.7 GW of offshore wind capacity.

 

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.