BPU Opens Up to Offshore Solicitations
BPU Opens Up to Offshore Solicitations
Today, the New Jersey Board of Public Utilities (BPU) voted unanimously on opening up solicitations for wind developers. Companies will now be able to come in and get approval for their wind projects along New Jersey’s coast from the BPU. The solicitation will go out on September 20th where there will be a guidance document open until December 28th. The BPU will make a decision on who will get a project by July 15th. The applicants can apply for all or part of wind project of 300 MW- 1100MW. BPU has already released their rules to set up a process to fund offshore wind developers for projects built off New Jersey’s coast. The application process is the next step as part of Governor Murphy’s Executive Order No. 8. The order sets a goal of providing 3,500 megawatts of offshore wind by 2030 with the first 1,100 megawatts implemented as soon as possible.
“This is the first major step by the BPU towards making offshore wind a reality for New Jersey. At 1100 MW, this is the largest solicitation for offshore wind in the country and will help make New Jersey a national leader in offshore wind. For the first time there will be multiple wind companies competing against each other. The BPU must pick the best project, one that is most cost effective, transparent, generates the most electricity for the dollar, and has the most environmental benefits. They agency also needs to expand the definition of net benefits in their financial rules too.Offshore wind is the most reliable and cost-effective form of offshore power. It can provide clean energy, reduce pollution, avoid health costs, and produce green jobs to places where it’s needed most,” said Jeff Tittel, Director of the New Jersey Sierra Club. “BPU needs to put in the rules and studies so they can pick the right project. They need to move fast because tax credits for wind developers will run out by 2019.”
In August, The New Jersey Board of Public Utilities (BPU) has released their Rules for Funding Offshore Wind Projects. These rules will set up a process to fund offshore wind developers for projects built off New Jersey’s coast.
“There are still a lot of questions that the BPU needs to address, including the cost-effectiveness of the projects, economic benefits of them, and the environmental benefits of avoided pollution. We hope the project solicitation will include clear standards for the BPU to assess these variables when measuring projects against one another. BPU’s funding rules has benchmarks and expands the definition of net benefits,” said Jeff Tittel. “We need to be sure that net benefits to New Jerseyans are maximized in an apples-to-apples comparison that includes location and transmission considerations.”
Wind developers have been pressing the Murphy Administration to expedite the review process so that they so they could qualify for federal tax credits to reduce project costs by 10 percent. The credits expire at the end of 2019.
“We believe that the BPU should put out an RFP or solicitation as soon as possible for the initial 1,100 MW. They need to have this done by the end of 2019 so that wind developers can quality for tax credits. We should let the wind companies decide if they want to come in for the entirety or for a piece of it. Whichever options is the quickest and most cost-effective should be selected. After the solicitation for the first 1,100 MW is established, we should send out for the rest as soon as possible. We should allow as many companies to compete as desire to do so in an open and transparent process,” said Tittel.
Offshore wind not only creates jobs in installing, operating, and maintaining wind turbines but the OWEDA also calls for investment in manufacturing wind turbines. This would create jobs rebuilding the Paulsboro Port, building factories, manufacturing the steel for the turbines, and assembling and transporting the windmills. Jobs would also be created building the substations and electric connections to serve the windmills.
“There’s been an eight-year delay under Christie and now the Murphy Administration is finally moving us forward. Wind energy is renewable, clean, and thousands creates jobs. The East Coast, with its large metropolitan areas and dense suburbs is hungry for jobs, investment and energy. We can work towards our current goal of 1100 MW and hopefully get the process going for 3500 MW of offshore wind by 2030,” said Tittel. “Offshore wind off our coast could feasibly power 1.2 million homes with clean energy. Our state has enough potential of offshore wind to meet 1/3 of our electrical needs.”
Other states, such as Rhode Island, have gotten the jobs and economic advantages of wind while NJ has fallen behind. We need to use renewable energy to create green jobs and a green economy, while stopping dirty power plants and other fossil fuel infrastructure from taking over the state.
“We need Governor Murphy to display strong leadership and action in fighting climate change and promoting renewable energy. As we continue to rebuild our coast in the wake of multiple storm events we need to invest in clean, renewable energy sources that do not contribute to climate change. We now have a chance to really get offshore wind moving and benefit from the economic and environmental benefits and clean jobs that come with it,” said Jeff Tittel, Director of the New Jersey Sierra Club. “After 8 years of delay from Governor Christie, it’s good to see the BPU moving quickly for solicitation of other wind companies. By picking the most effective wind project for New Jersey, they are making offshore wind a reality for our state.”
