Office of the Governor | Murphy administration announces expansion of offshore wind industry

TRENTON – Governor Phil Murphy and the New Jersey Public Utilities Board (NJBPU) today announced an acceleration of the state’s offshore wind procurement schedule, bringing forward the anticipated opening of the fifth offshore wind procurement from the third quarter of 2026 to the second quarter of 2025. By accelerating New Jersey’s procurement timeline, the Murphy Administration is leveraging the momentum of the state’s growing offshore wind industry, bringing additional economic benefits and jobs to the Garden State.

“Offshore wind development remains a once-in-a-generation opportunity that will deliver significant economic and environmental benefits throughout the Garden State,” he added. said Governor Murphy. “At this crucial turning point for the industry, both in New Jersey and across the country, it is critical that we remain committed to realizing the promise of thousands of union jobs that support families and cleaner air for generations to come.”

“New Jersey’s economic and environmental future depends on bold actions we take today to deliver billions of dollars in economic benefits and significant emissions reductions from the electric sector.” said NJBPU President Christine Guhl-Sadovy. “By accelerating the timeline for offshore wind development in New Jersey, we are underscoring our commitment to realizing the industry’s full potential for the benefit of all New Jerseyans.”

NJBPU recently announced the opening of its fourth state tender for 1.2 to 4 gigawatts of offshore wind generation capacity. The application window will be open until 5:00 PM ET on July 10, 2024.

The NJBPU also announced that it will pause work on a Second State Agreement (SAA) approach for coordinated offshore wind transmission planning with the regional grid operator, PJM Interconnection (PJM). The decision to pause follows the issuance of Federal Energy Regulatory Commission (FERC) Order 1920, which addresses long-term regional transmission planning and the ongoing PJM interconnection rail reform process, each of which has planning and cost implications. Suspending transmission at this time provides Board staff the opportunity to fully evaluate the implications of FERC’s new rule and participate in PJM’s process to ensure the best outcome to meet New Jersey’s transmission needs at the lowest cost to ratepayers.

Additionally, the Murphy Administration announced that the state and NJBPU had settled their claims against Orsted arising from Orsted’s decision to cease work on the Ocean Wind 1 and Ocean Wind 2 projects (the “Ocean Wind Projects”). Under the settlement, the state and Orsted agreed to release mutual claims arising from or related to the Ocean Wind projects, and the state will receive $125 million.

The funds will be used to support investments in qualified wind energy facilities, investments in offshore wind component manufacturing facilities, and other clean energy programs aimed at achieving the state’s clean energy goals under the Master Energy Plan.

About the New Jersey Clean Energy Program (NJCEP)