Ørsted's cancellation of 2.2 gigawatts (GW) of offshore wind dealt a significant blow to New Jersey last year. However, the state has rebounded by adding 3.7 GW of new projects to its offshore wind pipeline.
New Jersey was anticipated to announce another offshore wind solicitation in early 2024, and it has fulfilled that expectation. The Board of Public Utilities (BPU) has granted contracts to Leading Light Wind and Attentive Energy Two, which are poised to become two of the largest offshore wind farms in the U.S.
Leading Light Wind, with a capacity of 2.4 GW, will be situated over 40 miles off New Jersey's coast, aiming to power more than one million homes. A joint venture of Invenergy and energyRe, it marks the first instance of U.S.-based developers winning a competitive contract for a U.S. offshore wind farm. Construction is slated to commence in 2028, with a target completion date of 2032.
Attentive Energy Two, boasting a capacity of 1.34 GW, will be located 42 miles off New Jersey's coast, connecting at Sea Girt and expected to provide power for over 650,000 homes. A joint venture of TotalEnergies, Rise Light & Power, and Corio Generation, the project aligns with the state's mission of achieving a 100% clean energy economy by 2035. While the construction start date for Attentive Energy Two is not specified on their website, the commitment to the state's clean energy goals is emphasized.
The BPU has implemented contract changes to avoid the issues faced by Ørsted's offshore wind projects, including a 15% inflation adjustment, performance bonds for completion assurance, and mandatory performance security deposits for both projects.
TotalEnergies, in a press release, affirmed the profitability of the project, backed by a guaranteed level of Offshore Wind Renewable Energy Certificate (OREC) revenue. The initial set price is $131 per MWh after coming online, with an annual inflation increase of 3%.
Both projects have committed to purchasing wind turbine monopiles from EEW's factory in Paulsboro, New Jersey. This domestic manufacturing approach benefits the U.S. offshore wind sector by reducing costs associated with shipping large components from Europe and qualifies the projects for additional Inflation Reduction Act tax credits.
New Jersey has set a target of achieving 11 GW of offshore wind by 2040 and plans to launch a fourth offshore wind solicitation early this year.
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