New Jersey is starting new offshore wind projects after two major developments effectively failed in 2023.
Months after Orsted, one of the world's largest offshore wind developers, canceled plans for two large projects off the coast of New Jersey, the state's power regulator announced Wednesday that Two major contracts have been greenlit to reinvigorate the wind power dream. October 2023, New Jersey Board of Public Utilities (NJBPU) announced Wednesday. As of November 2023, New Jersey was in a dispute with the company over $300 million owed to the state.
According to NJBPU, the two selected developments are Invenergy and energyRE's Leading Light Wind project and Attentive Energy LLC's Attentive Energy Two project. The state hopes the project will eventually provide enough electricity to power 1.8 million homes. (Related: Environmental laws that have hampered pipelines for years could derail Biden's rush toward offshore wind)
Not much interest in offshore wind leaseshttps://t.co/EeKTqG90vw
— Daily Caller (@DailyCaller) August 30, 2023
Inflation, high borrowing costs and logistical problems plagued Ørsted's project for several months, and the company decided it had no choice but to exit the investment. The company had previously agreed to pay $200 million to build wind-related facilities in southern New Jersey and set aside $100 million to pay the state if the project was cancelled. We were trying to manage these debts at this time. November 2023.
E&E News says the new contract is designed to protect against the risk of future cancellations. The deal includes provisions that take into account inflationary pressures and requires Atento to post $67 million in collateral and Reading Light to post $120 million of its own collateral. There is.
Newly contracted projects are also expected to increase utility rates in the state. Residential electric rates are expected to increase by $6.84 per month, commercial rates by $58.73 per month and industrial rates by $513.22 per month. according to Go to E&E News. One of his two ended Ørsted contracts would have cost about half as much to house rate payers. according to In the New York Times.
Democratic New Jersey Governor Phil Murphy said the new contract is “undeniable proof that New Jersey's offshore wind future is stronger than ever.” “From our talented workforce to our growing status as a regional supply chain hub, our state continues to be an unparalleled location for the world's top developers. As well as delivering jobs and environmental benefits, it will also significantly advance our pursuit of a 100% clean energy economy by 2035.”
Murphy's office and the NJBPU did not immediately respond to requests for comment.
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