NJBPU Axes Fourth Round of Offshore Wind Contracts / The Sandpaper / February 5, 2025
By Gina Scala
Changes to the national energy policy, in part, prompted the N.J. Board of Public Utilities to announce earlier this week it will not move forward with awarding a fourth offshore wind solicitation contract.
“There were three initial bidders in the fourth solicitation. However, two bidders withdrew and only Atlantic Shores submitted a best and final offer,” Christine Guhl-Sadovy, NJBPU president, said Feb. 3.
Shell PLC’s recent withdrawal as an equity partner in the Atlantic Shores project, effectively stepping away from the American clean energy market, as well as uncertainty resulting from President Donald J. Trump’s Jan. 20 executive order temporarily pausing offshore wind leasing on the Outer Continental Shelf while implementing review of the federal government’s leasing and permitting practices, are among the factors that led the NJBPU to its decision, she said.
“The board concluded that an award in New Jersey’s fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time. Offshore wind still represents a once-in-a-generation economic development opportunity and is key to helping the region and country achieve energy independence,” Guhl-Sadovy said.
Still, she said the NJBPU is committed to working with Gov. Phil Murphy and other state agencies to build a successful offshore wind industry in New Jersey.
“We are also deeply appreciative of Atlantic Shores’ work and their commitment to providing a cleaner and healthier future,” Guhl-Sadovy said.
While supporting the NJBPU’s decision, Murphy said now is the time for “patience and prudence” as the offshore wind energy faces significant challenges.
“Developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence. This is especially critical during a time when new energy generation is needed to provide our residents and business with reliable, cost-effective energy solutions,” Murphy said Feb. 3. “I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs.”
In a Feb. 3 letter, advocates for wind energy in New Jersey called the NJBPU’s decision “a disappointing setback in the state’s journey toward a clean energy future.”
The letter was signed by Anjuli Ramos-Busot, director, New Jersey Sierra Club; the Rev. Ronald Tuff, New Jersey organizer, Green Faith; Richard Lawton, executive director, New Jersey Sustainable Business Council; Capt. Paul Eidman, marine affairs, Anglers for Offshore Wind Power; Amber Hewett, senior director, offshore wind energy, National Wildlife Federation; Debra Coyle, executive director, NJ Work Environment Council; Drew Tompkins, director, Jersey Renews; and Jody Stewart, organizing director, New Jersey Resource Project.
“Now, more than ever, the commitment to clean energy must be maintained. As Gov. Murphy previously stated, it is critical for New Jersey to establish a pathway toward a clean energy future where offshore wind, solar, and other renewable sources remain at the forefront of our state’s energy strategy, providing long-term stability and investment certainty amid increasing costs for residents,” they wrote.
The letter writers said wind energy as well as the benefits the industry brings to the table remain a vital piece to not only reducing reliance on fossil fuels but “delivering economic growth, energy security, and healthier communities, while simultaneously lowering electricity costs and strengthening the resilience of our grid against extreme weather.”
Citing the Trump administration’s pushback, state government engagement in keeping clean energy alive is more important than ever, according to the signatories.
“The upcoming gubernatorial election cycle in New Jersey represents a key moment for our New Jersey leaders to demonstrate their commitments to secure the benefits of clean energy for generations to come,” they concluded.