New Jersey picks Danish firm Orsted for wind energy project

The mammoth offshore wind energy project will be able to supply power to half-a-million homes. The project will generate 1,100 megawatts of electricity and is expected to be completed in 2024, according to the Associated Press.

Orsted vied for the project with two other offshore wind developers that submitted bids between September and December 2018 in response to New Jersey’s first offshore wind solicitation. Other bidders included Atlantic Shores Offshore Wind, a partnership between EDF Renewables and Shell New Energies, and Boardwalk Wind, which was sponsored by Norwegian multinational company Equinor, reports Power Magazine.

The state Board of Public Utilities (BPU) says the project – called Ocean Wind, – will result in a monthly electricity bill increase of $1.46 for residential customers, $13.05 for commercial customers and a little over $110 for industrial customers.

The BPU award was unanimous after an evaluation of a wide range of criteria that included offshore wind renewable energy certificates (OREC) purchase price, economic impact, ratepayer impact, environmental impact, the strength of guarantees for economic impact, and the likelihood of successful commercial operation.

The largest offshore wind farm on the planet, Walney Extension, is situated in the Irish Sea.

Orsted

“Today’s historic announcement will revolutionize the offshore wind industry here in New Jersey and along the entire East Coast,” Gov. Phil Murphy said in a prepared statement.

“Building our offshore wind industry will create thousands of jobs, invite new investments into our state, and put us on a path to reaching our goal of 3,500 megawatts of offshore wind by 2030.” Murphy, a Democrat, wants New Jersey to produce all its energy from clean sources by 2050.

Ørsted won the project partly on the basis of having the most detailed plans for economic development in the state, including the strongest guarantees around local content and manufacturing. The company plans on opening an operations and maintenance base for the project in Atlantic City.

Orsted is also building demonstration project off Virginia in partnership with utility Dominion Energy and owns the 30-megawatt Block Island Wind Farm, the only U.S. offshore wind project currently in operation.