New Jersey Governor Doubles Offshore Wind Goal to 7.5 Gigawatts

Democratic Governor Phil Murphy signed an executive order on Nov. 19 that raises the state’s offshore wind generation target to 7.5 gigawatts by 2035, more than double the previous goal of 3.5 gigawatts by 2030. The target is the second largest in the nation, next only to New York, which aims to achieve 9 gigawatts by 2035.

In June, the state’s Board of Public Utilities selected Denmark-based Orsted A/S to develop a 1.1 gigawatt wind project, known as Ocean Wind, off the coast of Atlantic City. The board has also proposed a timeline to consider two future solicitations for 1.2 gigawatts in 2020 and 2022.

An executive order issued last January provided the much needed impetus for the stalled industry, paving the way for state regulators to set up rules and develop a plan to deploy 3.5 gigawatts by 2030. The state’s Offshore Wind Renewable Energy Credit, or OREC, program was enacted nearly a decade ago, but was not fully implemented until then. Subsequently, New Jersey adopted a rule establishing the process to fund an offshore wind program and flowback revenue to ratepayers.

Among other steps, New Jersey created an Offshore Wind Tax Credit Program and Offshore Wind Supply Chain Registry, attracting investment in the nascent industry. To support these investments, Murphy signed an order to establish a Council for the Wind Innovation and New Development Institute tasked with developing a plan for a hub for the industry. The Economic Development Authority launched a technical assistance program to support local companies and develop the skills needed to participate in the offshore wind industry.

Once the new goal is attained, offshore wind power could supply power more than 3.2 million homes and meet fifty percent of the state’s electricity needs, Murphy said. The measure will help New Jersey meet its goal of sourcing half its electricity from renewable energy sources by 2030. The state’s energy master plan outlines a path to transition to zero-emitting generation by 2050.