New Jersey Offshore Wind Energy Timeline

Offshore Wind in New Jersey

In 2004 a Blue Ribbon Panel on Development of Offshore Wind Turbine Facilities was charged with identifying and weighing the costs and benefits of developing such facilities.

In April 2006, the Blue Ribbon Panel submitted its final report to the Governor, including the recommendation that NJ proceed with a limited test project, not to exceed 350 MW in order to obtain practical knowledge of the benefits and impacts resulting from offshore wind facilities. It also called for scientific baseline studies to be conducted in order to collect data about the existence, location and nature of New Jersey’s offshore natural resources.

Ocean/Wind Power Ecological Baseline Study

Between 2008 and 2009, the NJDEP's Office of Science conducted a study to obtain data on ecological resources in the Atlantic Ocean offshore New Jersey. The scope of work included data on the distribution, abundance and migratory patterns of avian, marine mammal, sea turtle and other species in the study area. The study area extends roughly 72 nautical miles from Seaside to Stone Harbor, beginning at the shoreline and extending out 20 nautical miles seaward (see map to the right).

Study Area for the Ocean/Wind Power Ecological Baseline Studies
Study Area for the Ocean/Wind Power Ecological Baseline Studies
;In July 2010, the Ocean/Wind Power Ecological Baseline Studies Final Report was published. The results of this report were instrumental in identifying suitable areas for siting future wind energy facilities offshore of New Jersey.
Environmental Sensitivity Mapping Results
Environmental Sensitivity Mapping Results

Offshore Wind Economic Development Act

In August 2010, the Offshore Wind Economic Development Act (OWEDA) was signed into law. This act advised the Board of Public Utilities to establish a program for Offshore Wind Renewable Energy Certificates (ORECs) to incentivize development of offshore wind facilities.

OWEDA also required a percentage of electricity sold by New Jersey suppliers to come from offshore wind and provided a $100 million tax credit for businesses related to the wind energy supply chain who established themselves within a designated Wind Energy Zone.

BOEM Wind Energy Leases Offshore New Jersey

On November 9, 2015, the Federal Bureau of Ocean Energy Management (BOEM) held it's 5th Federal Lease Sale (auction) for two Wind Energy Areas offshore of New Jersey (see map below). 

The winners of the auction were US Wind Inc. (Northern Lease Area—$1,006,240) and RES America Developments Inc. (Southern Lease Area—$880,715).

BOEM Offshore Lease Areas in the Atlantic Ocean
BOEM Offshore Lease Areas in the Atlantic Ocean

On May 10, 2016 RES America Developments Inc. transferred ownership of its lease to Ocean Wind, LLC—a subsidiary of Ørsted Wind Power North America.

On December 4, 2018 US Wind Inc. transferred ownership of its lease to EDF Renewables Development, Inc.

Ørsted Wind Power North America and EDF Renewables Development Inc. are currently working their way through the BOEM process, which includes extensive geophysical and geotechnical surveys, as well as thorough environmental review. Once the studies have been completed, they will be required to submit Constructions & Operations Plans (COPs) to BOEM, which, when approved, will enable the developers to construct and operate offshore wind energy facilities within their respective lease areas for a period of 25 years.

BOEM Renewable Energy Process: From Leasing to Operations

Executive Order #8

On January 31st, 2018, Governor Phil Murphy signed Executive Order #8, which enforced his commitment to offshore wind by directing all New Jersey State Agencies with responsibilities under OWEDA to fully implement OWEDA in order to meet a goal of obtaining 3,500 MW from offshore wind by the year 2030.

The Executive Order also set forth provisions to:
  • Develop and Offshore Wind Strategic Plan
  • Implement OWEDA's Offshore Renewable Energy Certificate ("OREC") program
  • Procure the necessary resources and expertise, including an offshore wind economic consultant
  • Issue a solicitation for offshore wind projects for the generation of 1,100 MW
  • Initiate a rule making process to establish the OREC Funding Mechanism
  • Initiate discussions with sister states in the Northeast and Mid-Atlantic region to explore the potential benefits of a regional collaboration on offshore wind and other opportunities to combat climate change
The "Offshore Wind Strategic Plan" shall focus on critical components of offshore wind development, including achieving scale to reduce costs, job growth, supply-chain business, workforce development, data collection, and appropriate siting of facilities, and shall ensure that natural resources are protected throughout the development and operational stages of offshore wind energy production.
-Executive Order No. 8

A Historic Solicitation Award

On June 21, 2019, the New Jersey Board of Public Utilities announced the winner of New Jersey's first offshore wind solicitation: Ørsted's Ocean Wind Project. At the time of the award, this 1,100 megawatt (MW) solicitation is the largest single-state procurement of offshore wind electricity generation capacity in the United States. This solicitation gives Ørsted the opportunity to construct and operate an offshore wind farm within their lease area 15 miles offshore of Atlantic City of 1,100 MW - enough to provide clean electricity to 500,000 New Jersey homes.

Ørsted's Ocean Wind project submitted a proposal that was deemed most beneficial to the State of New Jersey. The proposal contained detailed environmental protection and mitigation plans, as well as economic development plans which estimated the net economic benefits of the projet of $1.17 billion to the State. Ørsted's Ocean Wind project also proposed a first year OREC price of $98.10 per MWh. The levelized net OREC Cost - which represents the actual OREC costs paid by ratepayers after energy and capacity revenues are refunded to ratepayers - is estimated at $46.46/MWh, with an estimated ratepayer impact of a monthly bill increase of $1.46 for residential, $13.05 for commercial, and $110.10 for industrial customers.

 

Ørsted Ocean Wind Lease Area
Ørsted Ocean Wind Lease Area
Today's historic announcement will revolutionize the offshore wind industry here in New Jersey and along the entire East Coast. Building our offshore wind industry will create thousands of jobs, invite new investments into our state, and put us on a path to reaching our goal of 3,500 MW of offshore wind by 2030. This award is a monumental step in making New Jersey a global leader in offshore wind development and deployment.
-Governor Phil Murphy

A New Goal

On November 19, 2019, Governor Murphy, joined by Vice President Al Gore, signed Executive Order #92. This order effectively raised New Jersey's offshore wind goal from 3,500 megawatts by 2030 to 7,500 megawatts by 2035 - more than double the initial goal.

This new goal will deliver clean, renewable energy generation needed to meet the State's goals of 50% renewable energy by 2030 and 100% clean energy by 2050.

There is no renewable energy resource that provides us with either the electric-generation or economic-growth potential of offshore wind... When we reach our goal of 7,500 megawatts, New Jersey's offshore wind infrastructure will generate electricity to power more than 3.2 million homes and meet fifty percent of our state's electric power need. Our offshore wind industry will generate billions of dollars in investments in New Jersey's future, that will, in turn, create thousands of jobs. We have an immense opportunity to maximize our potential and make this region - and, specifically New Jersey - the nexus of the global offshore wind industry.
-Governor Phil Murphy
Governor Phil Murphy Signs Executive Order #92
Governor Phil Murphy Signs Executive Order #92

On February 28, 2020, the Murphy Administration announced the offshore wind solicitation schedule to meet the 7,500 MW offshore wind goal by 2035 and called upon the NJ Board of Public Utilities to take all necessary actions to implement the schedule.

To be responsive to the evolving offshore wind market, the schedule has been developed to provide flexibility in terms of the amount being procured with each solicitation and the exact timeline.

Proposed OSW Solicitation Schedule through 2035

Offshore Wind Strategic Plan

Executive Order #8 directed the Board of Public Utilities to develop an Offshore Wind Strategic Plan. Through collaboration with other NJ State Agencies (such as NJDEP, NJEDA, and NJDLWD) the final version of the New Jersey Offshore Wind Strategic Plan was released on September 9, 2020.

The Strategic Plan provides recommendations on establishing an offshore wind industry that achieves net economic benefits and gives New Jersey residents the best overall value, while also protecting the environment, commercial and recreational fishing interests, and mitigating the impacts of climate change.

Solicitation #2

On September 9, 2020, the Board of Public Utilities approved the opening of the application window for NJ's second solicitation for offshore wind power, seeking between 1,200 MW and 2,400 MW. 

On June 30, 2021, the BPU announced the approval of the Nation's largest combined offshore wind award to both Atlantic Shores Offshore Wind (a joint venture between EDF Renewables North America and Shell New Energies US LLC) and Orsted's Ocean Wind II - totaling 2,658 MW of offshore wind capacity. Combined, Atlantic Shores 1,510 MW project and Ocean Wind II's 1,148 MW project will provide the State with enough electricity to power more than 1.15 million homes with clean, renewable energy. 

In addition to strong environmental and fisheries protection plans, each project awarded has made a commitment to invest in NJ's growing offshore wind industry by building new manufacturing facilities at the New Jersey Wind Port and utilizing the foundation manufacturing facility at the Port of Paulsboro which will help create tens of thousands of jobs and inject billions of dollars in economic benefits to the State. Also, as required by the solicitation, each developer will be contributing $10,000 per MW of offshore wind capacity awarded to fund research initiatives and wildlife and fishery monitoring in the region - for a total of $26 million.

The table below shows the first year OREC price for each project, as well as the Levelized Net OREC Cost (LNOC) for the 20 year lifetime, and the average estimated monthly impact to ratepayers.

The offshore wind solicitation schedule has been updated following the second solicitation awards. This revised schedule can be seen below, or found here:

Executive Order 307

On September 21, 2022, Governor Murphy signed Executive Order 307, increasing New Jersey's offshore wind goal by nearly 50 percent to 11,000 megawatts (MW) by 2040. The Executive Order, which increased the State's previous goal of 7,500 MW, also directs the NJ Board of Public Utilities to study the feasibility of increasing the target even further.

New Jersey’s Offshore Wind Research & Monitoring Initiative

On September 22, 2022, during Climate Week, the New Jersey Department of Environmental Protection (DEP) and the New Jersey Board of Public Utilities (NJBPU) unveiled a suite of research projects aimed at ensuring environmentally responsible offshore wind energy development along the state's coastline. This initiative, facilitated by the Offshore Wind Research and Monitoring Initiative (RMI), encompassed studies to assess impacts on the recreational fishing industry, track fish movements using acoustic telemetry, monitor whale activities through passive acoustic technologies, and explore the use of offshore wind infrastructure for environmental monitoring. With funding from a $26 million allocation, these projects addressed high-priority research needs, reflecting a collaborative effort involving various stakeholders. decision-making.

Commissioner Shawn M. LaTourette emphasized the importance of gathering baseline scientific data to ensure responsible development, while NJBPU President Joseph L. Fiordaliso highlighted progress towards Governor Murphy's 2040 goal of 11,000 megawatts of offshore wind capacity. These efforts, aligned with the Energy Master Plan's vision for 100 percent clean energy by 2050, signify a significant step forward in New Jersey's journey towards sustainable offshore wind energy development, demonstrating a commitment to environmental responsibility and informed

Atlantic Shores Offshore Wind Joins New Jersey Wind Port

On January 11, 2023, in a significant move for New Jersey's offshore wind industry, Governor Murphy announced that Atlantic Shores Offshore Wind, LLC (Atlantic Shores) would become the second major tenant at the New Jersey Wind Port. Under the signed Letter of Intent (LOI) with the NJEDA, Atlantic Shores had agreed to lease 35 acres of land at the Port in Salem County, initially for marshaling its 1.5-gigawatt offshore wind project. This project had been expected to generate enough clean energy to power over 700,000 homes and create more than 200 skilled jobs at the Port.

Governor Murphy had emphasized the strategic importance of Atlantic Shores' commitment, highlighting the economic growth and job opportunities it brought while advancing the state's clean energy goals. With Atlantic Shores joining Ørsted as a major tenant at the Wind Port, New Jersey had solidified its position as a leader in offshore wind development, paving the way for a more sustainable and resilient future.

NJEDA Expands Wind Institute Fellowship Program

On February 8, 2023, the NJEDA approved the expansion of a program offering paid research fellowships to students at select New Jersey universities, aimed at preparing them for careers in the offshore wind industry. Originally launched in October 2022, the Wind Institute Fellowship Program supported 26 student researchers across four universities. The expanded initiative included additional institutions, offering undergraduate and graduate students up to $30,000 in funding for offshore wind research during the academic years 2023-24 and 2024-25.

With the offshore wind industry gaining momentum in New Jersey, the expanded fellowship program sought to nurture a pipeline of skilled individuals to meet the industry's needs. By investing in students, the program aimed to position New Jersey as a global leader in offshore wind while contributing to job creation and advancing Governor Phil Murphy’s clean energy goals. Participating universities administered the program and provided opportunities for students to engage in cohort meetings to enhance their understanding of the offshore wind sector.

Governor Murphy Addresses “Clean Energy & Jobs to Power the Next New Jersey”

On February 15, 2023, Governor Murphy delivered a pivotal address at Rutgers University, outlining New Jersey's strategic vision to combat climate change while fostering a robust clean energy economy. Against the backdrop of escalating climate challenges, Governor Murphy reiterated the administration's unwavering commitment to proactive and transformative action.
Reflecting on five years of progressive governance, Governor Murphy celebrated the state's achievements in advancing sustainability, resilience, and economic prosperity. Key initiatives such as rejoining the Regional Greenhouse Gas Initiative, setting ambitious clean energy targets, and investing in offshore wind and electric vehicle infrastructure were highlighted as cornerstones of New Jersey's clean energy transition.

Governor Murphy articulated six pivotal steps to propel New Jersey's clean energy agenda forward:

  1. Advancing the timeline for achieving a 100 percent clean-energy state to 2035, with a focus on facilitating a seamless transition for power supply companies towards renewable energy sources.
  2. Establishing a bold target to install zero-carbon-emission heating and cooling systems in hundreds of thousands of homes and businesses by 2030, accompanied by robust financial incentives for consumers.
  3. Engaging with natural gas utilities to devise a comprehensive strategy for reducing reliance on fossil fuels and promoting cleaner alternatives.
  4. Proposing the Advanced Clean Cars II rule to mandate that all new vehicles sold in New Jersey by 2035 be zero-emission, thereby accelerating the adoption of electric vehicles.
  5. Allocating $70 million from the Regional Greenhouse Gas Initiative auction proceeds to bolster local-government initiatives aimed at transitioning to all-electric medium- and heavy-duty trucks, alongside the necessary charging infrastructure.
  6. Introducing resilient flood mitigation rules to enhance New Jersey's preparedness for climate-induced challenges, including rising sea levels and extreme weather events.

Governor Murphy reaffirmed his dedication to forging a cleaner, more sustainable trajectory for New Jersey. He issued a compelling call to action, urging continued investment and concerted efforts in renewable energy, resilience initiatives, and environmental stewardship to safeguard the prosperity of future generations.

Solicitation #3

On March 6, 2023, the NJBPU took a significant step forward in its offshore wind energy agenda by initiating the application process for the State’s third offshore wind capacity solicitation. This solicitation aimed to award between 1.2 GW and 4 GW of offshore wind capacity, aligning with Governor Phil Murphy’s ambitious target of achieving 11 GW of offshore wind energy by 2040. NJBPU worked closely with federal agencies and the NJ Department of Environmental Protection to ensure the responsible development of offshore wind projects. The application window officially closed on June 23, 2023, with NJBPU anticipating final decisions by the end of the year.

NJ Funds Offshore Wind Environmental Studies

On April 19, 2023, the Murphy administration allocated nearly $2 million for offshore wind environmental studies and announced entry into the Responsible Offshore Science Alliance (ROSA). The funding supported projects like deploying a whale detection buoy off Atlantic City and conducting an Environmental DNA (eDNA) study to monitor species diversity in wind development areas. Another study had assessed the movement patterns and health of harbor seals. Membership in ROSA had enhanced collaboration on fish and fisheries research related to offshore wind. These efforts had aligned with New Jersey's commitment to ecologically responsible offshore wind development and had provided crucial baseline data for future assessments.

NJEDA Funds Sub-Arc Welding Training Academy in Camden

On April 21, 2023, the NJEDA allocated over $300,000 to establish sub-arc welding programs at Camden County College (CCC) and Camden County Technical Schools (CCTS). These programs were designed to train workers for careers in heavy steel offshore wind component manufacturing, addressing the demand identified in New Jersey's Offshore Wind Workforce Assessment. By partnering with local institutions, New Jersey aimed to provide industry-leading jobs while cultivating a diverse and skilled workforce for the emerging offshore wind sector.

CCC integrated sub-arc welding into its evening welding program and established a new training program for individuals with prior welding experience, along with offering scholarships. CCTS integrated sub-arc welding into its current training programs and established an afterschool program for high school students, with scholarships also available. These initiatives aligned with Governor Phil Murphy's vision for a stronger, fairer New Jersey and demonstrated the state's commitment to fostering local talent for the future of offshore wind.

NJEDA Grants Support Offshore Wind Workforce Training

In May 2023, the NJEDA approved over $3.7 million in grants for offshore wind workforce training. These programs, managed by the Wind Institute for Innovation and Training, aimed to diversify and strengthen the state's offshore wind workforce, with a particular focus on Overburdened Communities. Recipients, including organizations like the Mid-Atlantic States Career and Education Center and Eastern Atlantic States Carpenters Technical College, provided skill development, job placement, and wraparound services. These initiatives aligned with Governor Phil Murphy's vision for equitable access to the offshore wind industry, contributing to New Jersey's economic growth and clean energy goals.

NJEDA Approves Ørsted Sublease at New Jersey Wind Port

On July 28, 2023, the NJEDA Board officially approved a sublease agreement with Ørsted Wind Power North America, LLC, allowing the company to utilize up to 34 acres of space at the New Jersey Wind Port (NJWP). This agreement was projected to create approximately 200 new jobs and generate over $25 million in revenue for the state of New Jersey. The partnership with Ørsted signified a significant step forward in advancing the state's clean energy objectives, particularly with Ørsted’s Ocean Wind 1 project. Additionally, the sublease agreement included provisions for shared berth use, ensuring the port's versatility in attracting manufacturing tenants.

NJEDA Partners with NJIT to Establish Offshore Wind Graduate Certificate Programs

On September 12, 2023, the NJEDA Board greenlit a significant partnership with the New Jersey Institute of Technology (NJIT), allocating $399,000 to the Professional Offshore Wind Energy Certificates (POWERCERTS) Program. This initiative, part of the broader strategy to propel New Jersey towards Governor Phil Murphy's goal of 11 GW of offshore wind by 2040, established two graduate certificates focusing on Wind Power System Operation and Maintenance, and Wind Power Economics and Management. NJIT's POWERCERTS Program played a pivotal role in addressing the growing demand for offshore wind training in the state, with a curriculum developed in collaboration with industry experts and academic departments.

Additionally, the program offered scholarships and assistantships to encourage participation from minority and underrepresented communities, ensuring a diverse and skilled offshore wind workforce for the future. This funding originated from a previous $10 million MOU with the New Jersey Board of Public Utilities (NJBPU), further demonstrating the state's commitment to developing a robust offshore wind industry.

Apprenticeship Program Certified

In September 2023, the U.S. Department of Labor certified a Sub Arc Welding Apprenticeship Program, developed by NJ Department of Labor’s Industry Partnership Unit. The apprenticeship program is a key component of the State’s offshore wind and renewable energy workforce development efforts as welding is an in-demand occupation. The Sub Arc Welding apprenticeship is a 4-year program where apprentices obtain an industry certification such as 6G welding, as well as the possibility of academic credit from a local community college. As part of the apprenticeship, participants receive hands-on training in multiple welding techniques including Metal Inert Gas (MIG), Tungsten Inert Gas (TIG) and Sub-Arc Welding. EEW-AOS, a monopile manufacturer located in Paulsboro, NJ will provide the related technical instruction. Additional program partners include the NJEDA’s Wind Institute, Gloucester County Institute of Technology, Camden County Technical School, Salem County Vocational Technical School, and Camden County College.

Governor Murphy Statement on Offshore Wind in NJ

On October 31, 2023, Governor Murphy voiced disappointment as Ørsted opted to withdraw from its commitments to New Jersey's offshore wind development. He criticized the move as outrageous, questioning the company's credibility. Despite this setback, the Governor reaffirmed the state's commitment to offshore wind, citing ongoing interest in recent solicitations. He emphasized New Jersey's determination to become a global leader in offshore wind for its economic, environmental, and clean energy aspirations.

Governor Murphy Directs NJBPU to Accelerate New Offshore Wind Solicitation

On November 29, 2023, Governor Murphy directed the New Jersey Board of Public Utilities (NJBPU) to launch New Jersey’s fourth offshore wind solicitation in early 2024. This action reiterated the state's commitment to achieving a 100% clean energy economy by 2035. The Governor emphasized the significance of New Jersey's role as a burgeoning offshore wind development hub, highlighting the economic benefits and environmental impact of such projects. NJBPU President Christine Guhl-Sadovy supported the decision, underlining offshore wind's vital role in advancing the state's clean energy agenda and combating climate change.

NJEDA Granted Status as State Energy Financing Institution by DOE

On January 5, 2024, the NJEDA announced its designation as an eligible State Energy Financing Institution (SEFI) by the U.S. Department of Energy's Loan Programs Office (LPO). This determination granted NJEDA access to low-cost capital through LPO's Title 17 Clean Energy Financing Program, offering direct loan financing and loan guarantees for up to 80 percent of eligible project costs. This recognition came under the Bipartisan Infrastructure Law, allowing clean energy projects supported by SEFIs to access LPO financing, with billions of federal dollars now available for projects supported by entities like NJEDA.

As an eligible SEFI, NJEDA could support projects through the New Jersey Green Fund (NJGF), housed within the authority, aimed at investing in clean energy projects in the state. This milestone strengthened the state's commitment to fostering a robust and growing green economy, with streamlined access to federal funding to spur green job growth, promote technology innovation, and expand access to locally produced clean energy. Access to LPO capital positioned NJEDA to assist developers, property owners, and community-based organizations in advancing clean energy projects, complementing the planned NJGF's efforts. As a SEFI, NJEDA could provide various forms of financial support, including equity/subordinate capital, loan loss reserves, co-lending, and financial backstops, reducing financial barriers and accelerating the deployment of eligible clean energy projects.

NJBPU Awards over 3,700 MW of Offshore Wind Capacity

On January 24, 2024, in a landmark decision, the NJBPU gave the green light to award a combined 3,742 MW of offshore wind capacity to Invenergy and energyRE’s Leading Light Wind Project and Attentive Energy LLC’s Attentive Energy Two Project. With a unanimous vote, the NJBPU allocated 2,400 MW to Leading Light Wind and 1,342 MW to Attentive Energy Two, marking a significant stride towards New Jersey's target of achieving a 100% clean energy economy by 2035. Governor Phil Murphy lauded the awards as a testament to the robust offshore wind industry in New Jersey, highlighting the state's appeal to top developers globally. NJBPU President Christine Guhl-Sadovy emphasized the far-reaching benefits of these projects, including job creation and clean energy for future generations. The projects were poised to create over 27,000 direct and indirect job years and provided support for environmental and fisheries research efforts. With an estimated monthly bill impact of $6.84 for residential customers, the projects offered substantial benefits while advancing New Jersey's clean energy transition.

NJBPU Selects Coordinated Offshore Wind Transmission Projects

On October 26, 2022, the NJBPU selected the Larrabee Tri-Collector Solution (LTCS) offshore wind transmission project, marking a pioneering effort in the U.S. This decision, backed by PJM Interconnection expertise, aimed to save New Jersey ratepayers $900 million. NJBPU's commitment to future solicitations had supported expanded offshore wind goals, demonstrating the state's leadership in clean energy development. Following a rigorous competitive process, the MAOD-JCP&L proposal, totaling $504 million, had been chosen alongside onshore upgrades estimated at $568 million. The directive to prebuild a single corridor had emphasized a strategic effort to minimize environmental impact and community disruption. Collaborating with PJM had ensured efficient project completion, signaling New Jersey's proactive stance in advancing clean energy infrastructure.

Solicitation #4

On April 30, 2024, Governor Phil Murphy and NJBPU President Christine Guhl-Sadovy announced the opening of New Jersey's fourth offshore wind solicitation. This solicitation sought to award between 1.2 and 4 gigawatts of offshore wind capacity to enhance competition, promote economic development, and combat climate change, all at the lowest reasonable cost and risk to New Jersey ratepayers.

This solicitation followed the NJBPU's January 24, 2024, awarding of two significant offshore wind projects: the 1,342-megawatt Attentive Energy Two project and the 2,400 megawatt Leading Light Wind project. These projects are expected to bring $6.8 billion in economic benefits to the state, including the creation of approximately 4,350 jobs in the construction and maintenance of offshore wind farms, as well as in the offshore wind supply chain and related fields.

The offshore wind solicitation schedule has been updated following the fourth solicitation awards. This revised schedule can be seen below:


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