New Jersey Offshore Wind Industry Faces Setback as Fourth Round Solicitation Award Cancelled

Regulators for New Jersey’s offshore wind energy sector announced today that they will not be proceeding with an award for the fourth round wind solicitation due to “uncertainty driven by federal actions and permitting.” This marks the latest setback for the state, which has seen multiple projects delayed and withdrawn despite a strong commitment by Governor Phil Murphy to renewable energy.

The New Jersey Board of Public Utilities reported that two of the three bidders in this round withdrew, leaving only the Atlantic Shores project to submit a best and final offer. However, Shell, a 50-50 joint venture partner with EDF Renewables in Atlantic Shores, recently announced it would be pausing its involvement in the project due to financial reasons.

Shell’s decision to step back from the project adds to the challenges facing the offshore wind industry in New Jersey. The state’s fourth solicitation called for 1.2 to 4 gigawatts of offshore wind generation capacity, but with key players withdrawing from the process, the future of offshore wind in New Jersey remains uncertain.

Challenges and Delays

New Jersey has struggled to get its offshore wind industry off the ground, with projects facing delays and strong local opposition. Ørsted had to cancel its Ocean Wind projects in 2023, and subsequent projects have also encountered difficulties with securing turbine suppliers and facing regulatory hurdles.

Despite Governor Murphy’s commitment to accelerating the state’s offshore wind schedule, the industry continues to face challenges that have hindered its progress. The recent decision to cancel the award for the fourth round solicitation underscores the obstacles facing offshore wind development in New Jersey.

Future Plans and Strategic Review

Despite the setbacks, Governor Murphy announced plans to bring forward the fifth round of offshore wind solicitations to the second quarter of 2025. The state remains committed to building a successful offshore wind industry in New Jersey, but challenges persist in the face of federal actions and permitting uncertainties.

As the state grapples with the future of offshore wind development, the New Jersey Economic Development Authority reported today that it is accelerating its strategic review of options and alternatives for the New Jersey Wind Port. The development of a large port facility in Salem, New Jersey, to support offshore wind construction operations is under scrutiny as the industry faces ongoing challenges.

While the path forward for offshore wind in New Jersey remains uncertain, stakeholders are working towards finding solutions to overcome the obstacles and build a successful industry in the state.