New Jersey regulators have delayed an auction for offshore wind resources, scheduled for later in 2022, to align with a pending decision on transmission infrastructure solutions to support offshore wind developments.
On Feb. 28, the New Jersey Board of Public Utilities pushed back its scheduled third auction for offshore wind resources from September to January 2023. The board is planning five auctions through 2026 to acquire up to 7,500 MW of such resources.
Gov. Phil Murphy set a target for the offshore wind resources to be in operation by 2035, though the board estimated that the resources will be available earlier. The state's energy master plan calls for 100% clean energy by 2050.
Two auctions for offshore wind resources have already been held, and the board has awarded more than 3,700 MW.
The U.S. Bureau of Ocean Energy Management on Feb. 25 completed an auction for six lease areas in the New York Bight, off the shores of New Jersey and New York, receiving bids totaling $4.37 billion from mostly Europe-based developers.
New Jersey officials cited the BOEM auction as well as the state agreement approach solicitation they undertook with the PJM Interconnection LLC for transmission solutions. PJM conducted the solicitation on behalf of the state and said in October 2021 that it received 80 proposals from parties including existing transmission owners, offshore wind developers and independent transmission developers.
PJM and the board have asked the Federal Energy Regulatory Commission to approve a framework for implementing the agreement. Under their proposed timetable, PJM will recommend the most cost-effective and efficient transmission solutions to the board by May, and the board will decide which transmission projects to sponsor by September.
Explaining the delay in the upcoming offshore wind auction, board President Joseph Fiordaliso said in a statement, "[A]djusting our timeline to allow for the selection of the optimal transmission solution will inform our next solicitation for offshore wind projects. Coupled with the new lease areas in the New York Bight, developers will now have ample time to put together thoughtful and cost-effective proposals."
The targeted dates were not changed for the fourth auction in second-quarter 2024 and the fifth auction in second-quarter 2026.
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