June 24, 2019 — Offshore wind energy developer Ørsted was awarded a 1,100-megawatt commitment by New Jersey Friday for its Ocean Wind project off Atlantic City, the single largest award to date for the budding U.S. industry.
“After so many years New Jersey is finally open for business as far as offshore wind is concerned,” said Joseph Fiordaliso, president of the state Board of Public Utilities, after a unanimous vote to choose Ørsted to build the project on its federal continental shelf lease.
Ørsted contractors have been surveying the tract. It will be the first in what state energy planners hope will be three awards for offshore power, with a total capacity of 3,500 MW.
“We’re looking for competition. The competition only helps the ratepayer,” said Fiordaliso.
The Ocean Wind project would deliver a first-year price for Offshore Wind Renewable Energy Certificates (ORECs) of $98.10 per megawatt-hour. BPU officials estimate the levelized net OREC, representing actual costs paid by ratepayers after energy and capacity revenues are refunded to ratepayers, at $46.46/MWh.
That will increase average ratepayer monthly bills by $1.46 for residential, $13.05 for commercial, and $110.10 for industrial customers, according to the BPU.