New Jersey set out a planned timetable for its 7.5GW offshore wind procurement programme that’s the second-largest among US states in a bid to signal its commitment to the sector – while listing a range of variables that could affect the schedule as the industry evolves.
Plans for six rounds of solicitations by the state – the first already won by Orsted’s 1.1GW Ocean Wind project – set a timetable out to 2035, the estimated start of commercial operation for a final 1.4GW awarded in Q1 2029.
The build-out spurred by the programme will “generate enough electricity to power more than 3.2 million homes and meet 50% of the state’s electric power need, while supporting an offshore wind industry that will generate billions of dollars in investments in New Jersey’s future and create thousands of jobs”, said a statement.
Governor Phil Murphy said: “By announcing this planned solicitation schedule, we are demonstrating to our partners in industry and labour that we are committed to implementing this process in a thoughtful way that ensures economic growth for the New Jersey.”
New Jersey sees its offshore wind programme – second only to the 9GW planned in the state of New York – as central to its ambitions for a 100%-renewable power supply by 2050, with the next round due to open in Q3 this year.
However, the schedule (see panel below) – designed to offer a crucial level of certainty for developers, original equipment manufacturers, and the supply chain – also flags potential “flexibility” to be “responsive to the evolving market”.
“There are a number of factors that could influence the timing and the quantity to be procured including transmission solutions and development schedule, the status of additional lease areas, permitting, port readiness, establishment of a supply chain, workforce training, and cost trends,” said the state.
Global ratings giant S&P recently named transmission as one of the big challenges facing US offshore wind, which it claimed is currently “uneconomic” while recognising that ambitious state support programmes are set to drive the sector forward.
Liz Burdock, CEO of the US-based Business Network for Offshore Wind, welcomed the schedule and said: “Offshore wind electricity will power 3.2 million homes, create 1000s of jobs and set a clear course for solving a climate change crisis”.
